Cheap Imports Threaten Indian Steel Manufacturers

India’s steel ministry has refused demands by domestic steel manufacturers to increase import duties on hot-rolled steel coils to counter cheaper imports, mainly from neighboring China, according to Industrial Info Resources.

The steel ministry will not recommend the requested 15 percent increase to the finance ministry, saying that steel imports had not reached a level to warrant such a step. India’s current import duty on steel products is 5 percent.

During a recent meeting with the steel ministry, Indian steel manufacturers Tata Steel, Essar, JSW and others asked for the duty increase to protect them from cheap imports.

However, the steel manufacturers did not possess data supporting their claim that imports have risen by more than 100 percent, Atul Chaturvedi, Indian steel secretary said. The ministry contends imports have risen by 80 percent, an amount that does not make an increase in duties necessary.

The accompanying photo is from the Essar Group website and shows an Essar steel plant at Hazira, Gujarat, India.