India's Ministry of Steel has requested the Ministry of Commerce to investigate the influx of cheaper steel imports from China and Vietnam, according to a government source cited by Reuters. The ministry is urging for a thorough examination and recommendations to be made to the Ministry of Finance, which will ultimately make the final decision.
India, the world's second-largest steel producer, has recently become a net importer of steel products, with imports reaching a five-year high in April and May 2024. The Indian steel industry has raised concerns about the impact of these rising imports on domestic manufacturers, with JSW Steel's CEO highlighting the threat to planned investments in capacity expansion.
ArcelorMittal Nippon Steel India has also called for government action to address what it describes as "predatory prices" in steel imports. Discussions between the steel and commerce ministries regarding these rising imports, particularly from China, have been ongoing, with steel companies advocating for higher tariffs.
In the fiscal year ending March 2024, India imported 8.3 million tons of rolled metal, marking a 38.1% increase from the previous year, while steel exports rose by 11.5% to 7.5 million tons. The steel ministry has indicated that imports currently account for only 5% of Indian consumption, but complaints regarding Vietnam-origin hot rolled coils are being addressed by the Directorate General of Trade Remedies.