India to remain net importer of steel

Over the next two years, India will continue to be a net importer of steel according to Fitch Ratings Ltd.’s local unit. This can be attributed to the fact that high-grade products from South Korea and Japan flow in tax-free amid worries of dumping of steel from China. The imports are likely to increase if India joins the proposed Regional Comprehensive Economic Partnership (RCEP). This would be a threatening scenario for the domestic industry as they would face stiff competition from cheaper Chinese imports. India’s yearly consumption is close to 100 million tons. The government’s focus on infrastructure development is going to accentuate the country’s steel consumption.