Industry concerned about rising imports
Steel Secretary Sandeep Poundrik addressed concerns about rising steel imports during a Ficci event, acknowledging the genuine issue of supply glut caused by increased imports. He noted that 62% of steel imports enter India from Free Trade Agreement (FTA) countries, where they are subject to no customs duty. As a result, even if the government raises basic customs duties, it would have little effect on these shipments. The domestic steel industry has been pressing for higher customs duties to counteract cheap imports, particularly from nations engaged in dumping, which has led to a drop in global steel prices. Imports into India grew by 41% in the first half of the financial year, while exports fell by 36%. This has resulted in increased inventory levels, with steel companies now holding up to 30 days of stock, compared to the normal 15-16 days. Despite these challenges, steel demand in India grew by 13% in the same period, and per capita consumption is approaching 100 kg. India’s current steel production capacity is 180 million tonnes, with plans to expand by an additional 120 million tonnes by 2030 to reach a target of 300 million tonnes.