Steel imports drop, but domestic industry still faces pressure from foreign shipments

NEW DELHI: Despite a 29 per cent decline in steel imports in the first half of the current fiscal year due to several tariff and non-tariff barriers, the inward shipments continue to haunt the domestic steel industry and the government alike. To be sure, imports remain uncompetitive now,with domestic steel pricedat a discount of 7,000-8,000 per tonne to imported material.

The uneasiness is palpable. The steel ministry is scheduled to hold an “open house”early next week to discuss steel import-related issues. Steel firms and industry associations will share their views on imports in the open house.

The Reserve Bank has also flagged the issue of high imports in its latest October bulletin, noting that,in recent times, India’s steel sector was facing challenges due to increased imports and competitive pricing from major steel-producing countries. These affected domestic market share and reduceddomestic firms’ capacity utilisation.

“The pricing strategies of exporting nations remain a concern for the steel industry. Addressing these challenges calls for a balanced approach, including policy support and initiatives to enhance the competitiveness of India’s steel production through innovation, cost efficiency, and sustainable practices,” an article in the bulletin suggested. According to the Joint Plant Committee, India’s imports of finished steel fell by 29 per cent in the first half of the current fiscal year to 3.3 million tonnes (MT) while exports increased 22 per cent to 2.8 MT. Imported material came from bothFTA and non-FTA countries. India remained a net importer of steel in the first half. The government has taken multiple measures in recent times to rein in imports. Safeguard duties, anti-dumping duties, stringent BIS norms, and restricted licence renewals have made imports costlier. The landed cost of imported HRC is about Rs 56,000 per tonne, while domestic steel costs Rs 48,000–49,000, keeping mills competitive.