The Indian government has expressed concerns that low steel prices, largely due to international dumping, may hinder the country’s ambitions to increase its steel production capacity. The federal Ministry of Steel highlighted this issue in a statement released on Wednesday.
Key Highlights:
Production Goals:
India aims to boost its steel production capacity to 300 million metric tons by 2030, up from the current 180 million metric tons.
Impact of Low Prices:
The ministry warned that insufficient domestic steel production capacity could lead India to become a net importer of steel, jeopardizing infrastructure development reliant on domestic supply.
Low steel prices are affecting both large and small producers, creating challenges across the industry.
Import Trends:
Although the volume of steel imports is not substantial compared to total consumption, cheaper imports are depressing domestic prices, thereby impacting local producers.
India became a net importer of steel in fiscal year 2023/24, with finished steel imports from April to October reaching a seven-year high of 5.7 million metric tons.
Government Measures:
The steel ministry is advocating for the implementation of a safeguard duty or temporary tax to mitigate the rise in steel imports.
Industry Concerns:
Major Indian steel producers, including JSW Steel, Tata Steel, and ArcelorMittal Nippon Steel India, have raised alarms about the influx of cheaper steel imports, particularly from China.