Indian steel manufacturers seek double tariffs as Chinese imports rise

India’s steel manufacturers have requested the Centre to impose double tariffs on imported steel, in order to control the growing volume of the alloy that China ships to the country and sells at a cheap price here.

In a letter dated September 2, 2024, the Indian Steel Association (ISA) requested Union Finance Minister Nirmala Sitharaman to double customs duty on the import of steel to 15 per cent. The letter was accessed by the news agency Reuters.

The ISA is the organisation that officially represents India’s top steel manufacturers including Steel Authority of India, Tata Steel, JSW and ArcelorMittal Nippon Steel India.

“The Industry is concerned about the surge in imports of steel into India at predatory prices and the threat posed by China’s downturn,” the ISA’s letter to the Finance Minister said.

“There is an imminent threat of a further surge in imports in the coming months,” the letter from ISA added.

The letter from the Indian Steel Association urged FM Sitharaman to impose an extra 25 per cent tax on imported steel. The association felt the government’s Lesser Duty Rule needed to be removed. Under this rule, the import duty needs to be fixed at a level that merely ensures the prospects of Indian manufacturers are not hurt, rather than impose a higher import tax.

The United States levies a 25-per cent tariff on Chinese steel, effective Friday. Meanwhile, as export of Chinese steel increases internationally, steel manufacturers in Europe and Japan have also sought import curbs.

India is the second-biggest crude steel producer of the world after China, but the nation became a net importer of the alloy in the fiscal year 2023-’24 (FY24). The situation has remained unchanged in the current fiscal year (FY25).

The nation’s import of finished steel from China reached a seven-year high in the April-August period, while import of the alloy from all over the world was at a six-year high at 3.7 million metric tons, according to the news agency.

Union Minister of Heavy Industries and Steel, HD Kumaraswamy, recently said that Indian steel manufacturers were “suffering” because of cheaper import of the alloy.