India’s steel imports will see a resurgence in the wake of the global tariff turmoil and trade diversions and the 12 percent safeguard duty needs to be extended to a higher rate, JSW Steel Limited’s joint managing director, Jayant Acharya, said in a statement on Monday, June 21.
“While the safeguard duty has helped, India is again being seen as a target. They - exporters - are absorbing part of this 12 percent and then moving material here because the choices are limited,” he said.
India had imposed a 12 percent duty on carbon steel imports on April 21 for 200 days, cushioning the domestic sector from an import onslaught. However, the country continued to be a net importer even as shipments to India dropped by 33.6 percent quarter on quarter to 1.41 million mt in the three months ended June.
Acharya said that rising import from ASEAN countries, many of whom have FTAs with India, are a concern, adding that low-priced steels have come from Russia after a long absence and more are likely to come from other sources in subsequent months.
“Imports from ASEAN countries in the last quarter picked up by 112 percent on year-on-year basis. This is a big jump, impacting sentiments. Exporters, who pay zero duty due to FTAs, are absorbing a part of the 12 percent duty and sending shipments to India,” Acharya said.
“While the safeguard duty has helped, India is again being seen as a target. They (exporters) are absorbing part of this 12 percent and then moving material here because the choices are limited,” Acharya said.
Acharya said that many countries have put up 25 percent import barriers for a long time and that India should also consider such a level of import protection, taking a longer-term view of the impact of cheap imports on the domestic industry.
