Dilip Oommen, CEO of AM/NS India, has raised concerns that the surge in discounted steel imports from China may impact future investments by Indian steel companies. Oommen emphasized the need for immediate government intervention as domestic steel prices have plummeted to their lowest in over three years. He criticized the outdated practice of proving injury to justify trade measures and warned that if the situation persists without corrective action, it could deter planned capital expenditures in the steel sector.
Oommen suggested several short-term measures the government could consider, including increasing the basic customs duty from 7.5% to 12.5%, implementing the ‘melt-and-pour’ norm in free trade agreements (FTAs), and tightening Bureau of Indian Standards (BIS) regulations. The ‘melt-and-pour’ norm would restrict tax benefits under FTAs to steel products that are melted and shaped within the same country.
Data from Numero Analytics revealed a 38% year-on-year increase in flat steel imports to 3.42 million tonnes from January to June this year, with China, South Korea, and Japan being the top exporters. This rise, coupled with global economic challenges and predatory pricing, has put pressure on domestic steel prices.
Jayant Acharya, CEO of JSW Steel, and TV Narendran, MD and CEO of Tata Steel, have also expressed concerns about the impact of increasing flat steel imports. Acharya noted that India is more vulnerable due to global economic conditions and urged for appropriate trade measures. Narendran criticized China’s large steel exports as unsustainable and detrimental to the Indian steel industry’s future.
India, the world’s second-largest steel producer and consumer, aims to reach a production capacity of 300 million tonnes by 2030, up from the current capacity of around 161 million tonnes. Major steelmakers such as JSW Steel, Tata Steel, AM/NS India, and Jindal Steel are expanding their capacities through new and existing projects. Narendran noted that the industry has urged the government to act swiftly, as other global regions are already addressing similar issues.
