India's state-run steel producer Steel Authority of India Limited (SAIL) is seeking an increase of steel import duty to prevent arrivals in India of cheaper supplies, which have been on the rise in recent times, especially from China and Ukraine.
According to SAIL chairman S. K. Roongta, the recent rise in domestic demand has made India a favorite dumping destination for global steel mills.
"Global steel mills are looking for some additional markets for their products. Since demand in India is growing obviously, India will become a target as a market," said Mr. Roongta.
"If the government considers raising the protection level by raising the general import tariff, I suppose that would be welcome at this point," the SAIL chairman added.
Meanwhile, local steelmaker Visa Steel's managing director Vishal Agarwal commented, "We have asked for a 20 percent duty on steel imports in the upcoming budget. The Chinese government's recent decision to increase the export rebate is likely to push more and more cheaper grades of steel into the domestic market. This perhaps makes our case for import duty stronger."
China has recently decided to impose a nine percent rebate on steel exports, thereby increasing the Indian steel industry's concerns about increased flows of cheaper steel grades into the local market. On the other hand, the Chinese move has given hope to domestic steel producers seeking a 20 percent import duty.
Currently, India's steel import duty stands at five percent, which is deemed to be insufficient by the domestic steel industry. Local Indian steel producers have demanded a 20 percent duty instead, as well as early safeguard measures and antidumping duties to control such imports.
India's steel imports increased by six percent to more than one million mt in the April-May 2009 period compared to the year-ago period.
The Indian industry is also hopeful for a substantial hike in the export duty on iron ore. As SteelOrbis previously reported, India's steel ministry has urged the ministry of finance to restrict exports of iron ore.