Finished steel imports from China have surged to a seven-year high over April-August, affecting the Indian steel manufacturers. The Indian Steel Association has asked the government to double the customs duty on steel imports to 15 percent.

Sep 27, 2024

India’s steelmakers have asked the government to double tariffs on steel imports. This proposal is a reaction to a significant increase in finished steel imports from China, which have reached a seven-year high between April and August. The overall finished steel imports surged to 3.7 million metric tons, marking a six-year peak.

The Indian Steel Association has asked the government to double the customs duty on steel imports to 15 percent, as per the report.

ISA, representing major steel producers such as JSW Steel, Tata Steel, ArcelorMittal Nippon Steel India, and the state-run Steel Authority of India, has asked the government for the removal of the ‘lesser duty rule’ under which the import duty should be fixed at a level, rather than fixing the import tax at a higher rate. The removal of this rule could more effectively protect local producers. The government has yet to take action on the request.

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Globally, other major steel-producing regions, such as Japan, Europe, and the United States, have also taken steps to curb the impact of surplus Chinese steel in their markets. The U.S., for instance, has imposed a 25 percent tariff on Chinese steel imports to protect its industry. Indian steelmakers are advocating for similar measures, emphasizing the need for a level playing field in the face of increasing global competition and market distortions caused by excess Chinese supply.