Indian steel braces for Chinese influx after US tariffs
India’s steel industry is bracing for a potential influx of Chinese steel imports following the US decision to impose steep tariffs on Chinese steel and aluminum, Reuters reported on Thursday.
Industry executives and analysts warn this could exacerbate existing concerns about cheap imports harming domestic producers.
The alarm comes after US President Joe Biden announced significant tariff increases on various Chinese goods, including steel.
Alok Sahay, Secretary General of the Indian Steel Association (ISA), representing major steelmakers like JSW Steel and Tata Steel, expressed concerns about the threat of imports as major steel-consuming economies close their doors to steel producers.
Sahay highlighted India’s susceptibility to increased imports from China, particularly in the steel industry. Indian steel producers have been facing challenges due to the influx of cheaper Chinese steel in the market, as China has been selling surplus stocks at competitive prices.
Despite industry pressure for import restrictions on Chinese steel, the Indian government has resisted, citing strong domestic demand driven by recent economic growth.
India’s steel consumption rose by 13.4 per cent to 136 million metric tons in the fiscal year ending March 2024. India has increasingly relied on steel imports, becoming a net importer in the 2023/24 fiscal year, with China as the top exporter. Chinese steel shipments to India nearly doubled to 2.7 million metric tons in 2023/24.
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