India Mulls Extension of Import Tariffs on Steel Products
NEW DELHI: India is thinking about extending an import tariff, commonly referred to as a safeguard duty, on certain steel products to tackle the influx of cheaper imports, particularly from China, according to a source familiar with the situation.
As the world’s second-largest producer of crude steel, India had suggested a three-year import tariff of 11%-12% on specific steel items back in August. This recommendation came from findings by the Directorate General of Trade Remedies, a body under the federal trade ministry.
The source, who requested anonymity due to the sensitive nature of the issue, mentioned to Reuters, “It (the tariff) is under consideration.” The Ministry of Finance in India did not respond immediately to requests for comments.
Earlier in April, the Indian government had imposed a temporary 12% tariff for a period of 200 days, which ended recently.
In the first seven months of the financial year, India’s imports of finished steel dropped by 34.1% compared to the previous year. South Korea was the largest exporter to India during this period, delivering 1.4 million metric tons of finished steel, followed by China, Japan, and Russia.
The source indicated that Chinese steel imports have made India “vulnerable” mainly due to their lower prices.
In related news, China’s steel production is expected to fall below 1 billion tons this year, marking the first decline in six years, as the government aims to cut production levels. In late October, Beijing announced a tighter steel capacity swap plan aimed at addressing overcapacity in the industry, which could help balance supply and demand.
