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The Steel Ministry is in discussions with the Finance Ministry to explore options for curtailing rising imports of steel, while “taking steps to protect” the domestic industry, a senior official told businessline.
Policy interventions have been sought, and these could be in the form of duty impositions on specific offerings or other trade limiting measures.
According to the official, Indian steel players and other stakeholders have already represented to the Ministry raising concerns on rising incidents of import of the metal. Presentations were also made to the Ministry officials, including the Minister.
“We are taking it up with the Finance Ministry for probable policy interventions. These are ongoing discussions,” the official said.
On Thursday, the Steel Ministry launched an upgraded Steel Import Monitoring System(SIMS 2.0) to track, report and monitor import shipments. Revamping was to make reporting more rigorous.
For example, if an import consignment declares a particular source of import, which is not licensed by BIS, Ministry will be enabled to not recommend its import.
“The detailed data will enable Customs to conduct better analysis and risk management of steel imports,” Steel Minister HD Kumaraswamy said.
Net Importer Still
Increase in steel imports, particularly from China, have been pointed out as a concern even in the annual Economic Survey of 2023-24. India, incidentally, turned net importer – where imports exceeded exports – in FY24.
“This was largely driven by price differentials between international and domestic prices of finished steel. Low prices in the international market led to reduced profit margins for exports and made imports more affordable, affecting the trade balance in steel,” the Economic Survey mentioned.
In Q1FY25(April – June), the country continued to be net importer. Shipments of the metal coming in were at 1.9 million tonnes (mt), up 30 per cent; whereas exports were 1.3 mt, down 38 per cent.
Quick Response Time Measures
“We are taking up the matter with government for various kinds of trade-limiting measures, which need to be put in a quick response time. There are cases visible where trade measures as per world trade regulations can be taken, and those can be expedited. In addition to that, we are looking for and discussing other trade measures, which could be possible,” Jayant Acharya, Joint MD & CEO, JSW Steel, said during a post results earnings call.
Incidentally, India’s largest steel-maker, JSW Steel, has repeatedly spoken of rising imports from China as well as other FTA countries as a concern for the domestic steel industry.
Countries have put barriers on surplus steel coming – in.
Imports from other FTA countries are up 43 per cent. And this meant there could be possible trade diversions into India, the JSW Steel JMD and CEO said adding”...especially from China and the FTA countries is a concern for us because it’s gone up Y-o-Y”. And some monthly dip notwithstanding continues to be at elevated levels.
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