Steel Ministry probes cheap imports from China & Vietnam

India became a net importer of steel, with imports hitting a five-year high, in FY23. The steel industry is also concerned about potential higher taxes on carbon-producing industries, as proposed by the European Union (EU).

India’s Ministry of Steel has requested the Ministry of Trade to investigate into the impact of cheaper steel imports from China and Vietnam. This comes as India, the world’s second-largest crude steel producer, transitions to being a net steel importer. 

The source, who spoke to Reuters on the condition of anonymity due to the confidential nature of the discussions, said, “We have said that the trade ministry should investigate these imports and offer its recommendations to the finance ministry, which will take the final call.” 

According to provisional government data, the fiscal year ending in March saw India’s imports of finished steel hit a five-year high in April and May. The Ministry of Steel and the Ministry of Trade are concerned about the influx of these imports and are seeking trade measures to address the issue.

JSW Steel, a major player in India’s steel industry, has been actively negotiating with the government to combat the rising imports. The steel industry is also concerned about potential higher taxes on carbon-producing industries, as proposed by the European Union (EU). 

The EU’s plan, which aims to impose tariffs on high-carbon goods such as steel, aluminum, and cement, is part of its broader goal to achieve net-zero greenhouse gas emissions by 2050. However, India has not accepted this proposal.

In addition to these trade concerns, the Ministry of Steel is exploring ways to diversify its sources of coking coal, a crucial raw material for steelmaking. Currently, India relies heavily on Australian coal, but the country is seeking to reduce this dependency by importing from countries like Russia, Canada, the United States, and Mongolia. Indian steel firms, including JSW Steel and the Steel Authority of India (SAIL), have been negotiating coking coal shipments from Mongolia, aiming to secure more stable and varied supply sources.