Jayant Acharya, CEO of JSW Steel, has expressed concern about the increasing influx of steel imports into India, highlighting a potential threat to the country's steel producers. Despite robust domestic demand, the rise in imports, especially from countries with free trade agreements, poses a challenge to the planned capacity expansions by Indian steelmakers. The industry, which has seen profits decline in the April-June quarter, is advocating for trade measures to address these issues. Acharya emphasized that while the company is expanding capacity and investing to boost steel availability, these investments come with certain risks over the next three to four years.
JSW Steel projects that exports will account for 10-15% of its total sales this year, although it noted that international markets are currently subdued.
In a related development, ArcelorMittal Nippon Steel India, through its CEO Dilip Ummen, urged the government to take steps to limit steel imports, which are being sold at what they consider predatory prices. Ummen expressed hope for decisive government action on this matter, describing it as a serious concern.
Reports from GMK Center highlighted ongoing discussions between India's ministries of steel and commerce regarding the rising imports of steel, particularly from China. There have been persistent calls from the steel industry for higher tariffs, as India became a net importer of steel in FY2023/2024, with imports of rolled steel reaching a five-year high in April and May.
However, India's Steel Ministry has so far resisted these demands, citing strong domestic demand.
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