India’s steel minister will try to convince the finance ministry to raise tariffs on steel imports, he said on Wednesday, to protect domestic mills from a rise in cheaper imports from countries such as China.
India, the world’s second biggest crude steel producer, turned net steel importer in the fiscal year through March, and the trend continued during the first four months of the fiscal year that began in April.
China was the top steel exporter to India from April to July, shipping about 807,000 metric tons to its neighbour. It was followed by Japan and South Korea.
Minister of Steel H. D. Kumaraswamy told reporters on the sidelines of an industry conference his ministry had requested the Ministry of Steel take several steps to protect it from cheaper imports. They included backing an industry demand to raise tariffs on steel imports to 10%-12% from 7.5%.
“Our steel industry is facing a lot of problems. They are suffering,” Kumaraswamy told reporters.
The Indian government in August initiated an anti-dumping investigation on certain steel products imported from Vietnam.
Steel mills such as JSW Steel (JSTL.NS), India’s largest steel producer by capacity, and Tata Steel, meanwhile, have said that the industry was in talks with the government on trade measures.
Steel prices in India have plunged to their lowest level in more than three years due to higher imports and subdued exports, according to data from commodities consultancy BigMint.
