MUMBAI: At a time the US and European governments are busy trying to close their markets to foreign steel and imposing anti-dumping duties on steel products from India, there has been a sharp surge in steel imports into the country.
This could push down prices, which have already suffered due to poor demand, say industry officials. Most Indian companies had cut production late last year to counter the slowdown.
According to data from the Directorate General of Commercial Intelligence and Statistics—part of the commerce ministry—the average monthly import of steel in September was 80,000 tonnes, which went up to 250,000 tonnes in February, following increased buying by galvanised steel players, engineering and construction companies.
Although imports are rising in most categories of steel, import of hot rolled coils—the base grade category—is also going up, despite being included in the restricted list last November. Hot rolled coils are bought by cold rolled players, who make value-added products such as galvanised steel for use in construction and consumer goods.
“Earlier, steel was imported mainly in categories that India couldn’t make,” said a senior executive of a large private steel company. “Today we can make all categories, but imports are still happening as countries such as Russia and Ukraine are dumping their steel here.”
Prices of steel have fallen sharply by more than 60% since September last, forcing many companies to reduce production to cut losses.
Companies that make primary steel include state-owned SAIL and private companies such as Tata Steel, Essar Steel, JSW Steel and Ispat Industries. Companies that import steel are mainly cold rolled players such as Indian Steel Corp, Bhushan Steel, Uttam Galva and Jindal Saw, carmakers such as Hyundai and engineering companies such as Larsen & Toubro.
Source : The Economic Times