The Indian Steel Ministry has requested the Commerce Ministry to investigate the flow of low-cost steel from China and Vietnam. The steel industry is urging the Commerce Ministry to conduct a comprehensive review and make recommendations to the Finance Ministry, which will have the final say on possible actions.
Preliminary reports indicate that India, the world's second-largest steel producer, became a net importer of steel in FY 2023-24. This trend has continued and rolled steel imports reached a five-year peak in April-May 2024.
The Indian steel industry has recently called for measures to rein in the surge in steel imports. Jayant Acharya, CEO of JSW Steel, expressed concern over the negative impact of these imports on local mills, warning that it could jeopardize planned investments in capacity expansion. Similarly, ArcelorMittal Nippon Steel India called on the government to address the issue of steel imports being sold at extremely low prices.
Earlier, the Ministries of Steel and Trade held discussions on increased imports, particularly from China. Despite repeated calls by steel companies for higher tariffs, the Ministry of Steel hesitated, citing strong domestic demand.
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