Prospects of steel are looking good and there is no sign of huge surge in imports in the Indian market yet, said Chaudhary Birender Singh, Steel Minister.
Speaking to media persons at the sidelines of an event to discuss pension scheme for workers here on Tuesday, Singh said, “There are new headwinds emerging in the market and there is no sign of imports swelling just yet. We will be able to meet any challenges,” he added.
The US has imposed a 25 per cent tariff on steel imports. Singh had said that while the tariff will not affect the steel export it might have indirect impact on the industry. This has led to fears of cross-dumping of steel products into India from countries that originally had supplies targeted to the US. After this move, India too imposed higher duty on steel products.
For example, duty on flat-rolled iron products has been raised to 27.50 per cent, from 15 per cent, while certain flat-rolled stainless steel products will now attract 22.50 per cent duty against 15 per cent earlier. However, the revised tariff will come into effect from August 4.
August date has been fixed with a view to provide window for negotiation. One round of meeting between India and the US has already been taken place while the next round is scheduled this week in Washington According to an official the export to the US is important and despite the tariff the they are confident that the US is not going to stop buying steel.
On the pension front, Singh said Ministry of Steel has agreed to the proposal to introduce pension scheme for both executives and non-executives. SAIL Board will assess the financial situation, prepare a roadmap and developmental plan for the same. The pension scheme will benefit around 96,000 serving and 56,000 retired employees.