India's steel, trade ministries are in dialogue over upsurge in Chinese imports

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India's steel, trade ministries are in dialogue over upsurge in Chinese imports

Ferrous 01 Jul 2024 10:35 AM IST Reuters

India's steel and trade ministries are in talks about increased imports, notably low-cost Chinese items, according to a government source, as top producers continue to ask for higher levies. India became a net steel importer in the fiscal year that ended in March, and the trend continues, with finished steel imports reaching a five-year high in April and May, according to provisional government data.

India imported 1.1 million metric tonnes (MMT) of completed steel between April and May, a 19.8% increase over the previous year. "The steel ministry has apprised the commerce ministry on rising imports and industry has sought a probe," the source said, declining to be identified as discussions are not public.

India is keeping an eye on inexpensive Chinese imports, adding to the source as China has recently become the leading steel exporter to Asia's third-largest economy. Major Indian steel producers such as Tata Steel have flagged Chinese imports as a "growing concern."

India's steel mills, concerned about a dramatic increase in imports, have repeatedly urged for government action and higher import levies. The federal Ministry of Steel has rejected these requests, citing significant local demand. Due to increasing imports, a top official at ArcelorMittal Nippon Steel India stated earlier on Saturday that the government should consider increasing the basic customs charge on steel from 7.5% to 12.5%.

"Immediately, we should go back to 12.5% duty regime, which was there earlier," said Ranjan Dhar, director and vice president, sales and marketing, ArcelorMittal Nippon Steel India.

Also Read : Global stainless steel production output by 5.5% y/y in Q1 Indian steel mills seek iron ore export ban as China sales jump

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India's steel, trade ministries are in dialogue over upsurge in Chinese imports

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