New Delhi: India’s federal Ministry of Steel has requested the trade ministry to investigate cheaper steel imports from China and Vietnam, as New Delhi grapples with rising import volumes. A government source directly aware of the situation shared this information with Reuters on Wednesday.
India, the world’s second-largest crude steel producer, became a net steel importer in the fiscal year through March. This trend continued with finished steel imports reaching a five-year high in April and May, according to provisional government data.
“We have said that the trade ministry should investigate these imports and offer its recommendations to the finance ministry, which will take the final call,” the source told Reuters, declining to be identified due to the confidential nature of the discussions.
India’s steel and trade ministries did not immediately respond to emails seeking comments, as reported by the international news agency Reuters.
Last week, India’s JSW Steel (JSTL.NS) mentioned to Reuters that the steel industry was in talks with the federal government for trade measures to address rising imports, particularly from China and Vietnam.
Additionally, the steel ministry urged officials from the European Union not to impose higher taxes on its carbon-producing industries during a meeting two weeks ago. Reuters reported on July 29 that India had not accepted an EU proposal to levy higher taxes on its carbon-producing industries.
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The EU approved the world’s first plan to impose tariffs on imports of high-carbon goods, including steel, aluminium, and cement, as part of its goal to achieve net-zero greenhouse gas emissions by 2050.
Separately, the steel ministry is in discussions with mills to diversify imports of coking coal, a crucial raw material for steelmaking, from countries including Russia, Canada, and the United States. This move aims to reduce India’s reliance on Australia, its largest supplier.
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Indian steel companies consume around 70 million metric tons of coking coal annually, with imports constituting approximately 85% of the country’s total requirements. Some Indian firms have also placed import orders for coking coal from Mongolia on a trial basis.
Steelmakers including JSW Steel and state-owned Steel Authority of India (SAIL.NS) are set to receive coking coal shipments from Mongolia after months of negotiations, as reported by Reuters earlier this month.
