India’s finished steel imports surged 53.1 per cent to 2.545 million tonnes in the first quarter of fiscal 2015-16 compared to the corresponding period last year, highlighting the continuing trend of cheap imports from countries such as China, Japan and Korea putting pressure on domestic firms.
According to data from Joint Plant Committee, under the Ministry of Steel, India’s consumption of finished steel grew 7.1 per cent to 20.10 million tonnes in the April-June period.
“Such growth (consumption) stemmed both from rising production for sale (up by 2.8 per cent) and most importantly, imports (up by 53.1 per cent) during this period and in general, is in sync with the overall growth trends noticed in major macroeconomic parameters viz the IIP and the Core Sector Index,” it said.
Cheaper steel imports from countries such as China, Japan and Korea have proved to be a major headwind for the domestic steel industry, with companies such as JSW Steel, Tata Steel, among others facing profit and margin pressure.
The imported steel are priced up to 20 per cent lower than the Indian price.
India’s steel imports had jumped nearly 70 per cent to over 9 million tonnes in fiscal 2015, with China accounting for a third of the imports. Imports soared 55 per cent in April-May.
In June, India increased duty on certain steel products by 2.5 per cent and also imposed anti-dumping duties ranging from $180-$316 per tonne on certain industrial grade stainless steel and has indicated more steps like tightening quality control to protect the domestic industry.
Source: The Hindu
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