The Aryavarth Express
Agency (New Delhi): India’s steel industry is concerned about a potential surge in Chinese steel imports following the U.S. imposition of steep tariffs on Chinese steel and aluminum. Industry executives and analysts warned that the new tariffs could exacerbate the already significant pressure on Indian steel producers from cheaper Chinese imports.
U.S. President Joe Biden recently announced substantial tariff increases on various Chinese imports, including steel and aluminum. Alok Sahay, Secretary General of the Indian Steel Association (ISA), expressed grave concerns about the threat posed by these imports. “India is already under grave threat of import because all major steel-consuming economies are shutting their doors on these steel-producing countries,” Sahay said, highlighting India’s vulnerability to “surging and predatory import.”
The ISA includes top Indian steelmakers such as JSW Steel Ltd and Tata Steel Ltd among its members. Over the past two years, Indian steel producers have repeatedly raised alarms over the influx of cheaper Chinese steel, which has been offered at competitive rates due to weak domestic demand in China, the world’s largest steel producer. This practice has severely impacted Indian producers, prompting them to lobby the government for intervention.
Despite these concerns, the Indian government has resisted calls to curb Chinese steel imports, citing robust local demand driven by increased economic activity. During the fiscal year ending in March 2024, India’s steel consumption surged by 13.4% to 136 million metric tons. However, the country also became a net importer of finished steel during this period, with China emerging as the top exporter to India. Chinese steel exports to India nearly doubled to 2.7 million metric tons in the 2023/24 fiscal year.
A senior executive at a major Indian steel firm, who wished to remain anonymous, emphasized the need for protective measures but acknowledged that action would likely be delayed until the new government is in place. India is currently in the midst of a seven-phase election that began on April 19, with results expected on June 4.
Akash Gupta, a director at Fitch Ratings, suggested that if domestic steel prices and margins decline sharply due to an import surge, the government may eventually introduce tariff-related measures to protect the industry.