Dumping of stainless steel by China, at subsidised rates, continue unabated, and have near doubled in the last three years says Abhyuday Jindal, Managing Director of Jindal Stainless Ltd.

Demand in India continues to “good” and is expected to grow at a consistent 8–10 per cent supported by an infra-push. Export markets – the US and Europe – are “slowly picking up”.

In an interview to businessline, on the sidelines of an ICC event, Jindal talks about demand scenario – both in India and overseas, concerns over Chinese dumping and expansion plans. Excerpts:

Q

One quarter into the new fiscal, how is stainless steel demand shaping out in India? 

Domestic demand is strong, and driven by the infra push. We are anticipating an 8–10 per cent growth for sometime now. But what hurts the most is Chinese dumping at subsidised rates. Such dumping of stainless steel is unabated and increasing month-on-month.

Q

And on exports?

Exports are slowly picking up, to both Europe and the US. We were expecting much faster recoveries. But that has not happened. In Europe, the recovery is now more visible in the Western part that include Germany, Italy and France. But it is still on the slower side.

Q

Industry’s concerns over Chinese dumping have been a recurring issue for over a year now. Your comments. 

It’s been nearly been three years now that the industry has raised concerns over dumping. From around 40,000–50,000 tonnes a month three-years back, shipments coming in (dumping) from China is now up to nearly 90,000–100,000 tonnes a month.

This is a big negative especially for MSMEs who are unable to grow. Some of them have exited their businesses and become traders.

In fact, we are not asking for protectionism when we seek action. Concerns have not been raised in terms of shipments from Japan or Korea. But are specific to China since these shipments are coming in at subsidised rates (below cost of production in their country of origin). So, we are saying that there is space for imports while seeking a level playing field.

Q

Europe is mulling a tax on steel scrap. How does it impact JSL?

We have reduced our buying from Europe. There were still some high value or high nickel content scrap that was coming in; but mostly, say around 90 per cent is from India and nearby countries like in Asia or Middle East.

Q

You recently completed the acquisition of Chromeni Steels. How does this impact your top-line?

The acquisition will help us increase our cold rolling capacity by 15,000–20,000 tonnes. In the next 6–7 months, we should get the Chromeni plant up and running. In terms of impact, we expect a positive one on both the topline and bottomline. Upping supplies in the domestic market would be the focus. But we will also keep open the option to export depending on factors like EBITDA (earnings before interest, tax, depreciation and amortisation) and market conditions. 

Concerns have not been raised in terms of shipments from Japan or Korea. But are specific to China since these shipments are coming in at subsidised rates.Abhyuday Jindal, Managing Director of Jindal Stainless Ltd