TV Narendran, Managing Director of Tata Steel, has raised concerns about the potential threat posed by cheaper Chinese steel being routed through Southeast Asia into India. Narendran cautioned that these imports could undermine the significant investments made by Indian steel companies, urging the government to take protective measures.
“The Indian steel industry is a prime example of successful private sector investments. Companies like Tata Steel, AMNS, JSPL, and JSW have all announced substantial capital expenditures. Our appeal to the government is to safeguard these investments from being undermined by cheap imports and associated taxes,” Narendran said.
This warning comes amid a challenging period for Indian steel producers, who are grappling with both declining exports and rising imports. Tata Steel stresses that the government should scrutinise imports not only from China but also from Southeast Asian countries, where Chinese steel is often rerouted.
In FY24, India imported 8.3 million tonnes of finished steel, marking a 38.1% increase from the previous year. Conversely, steel exports rose by only 11% to 7.5 million tonnes during the same period. This disparity has led to excess capacity being redirected to the domestic market, exerting downward pressure on prices.
Highlighting global responses to similar issues, Narendran noted that the US has imposed a 25% duty on certain Chinese steel products to protect its industry. Additionally, the US recently prevented China from bypassing tariffs by routing steel through Mexico, imposing a similar 25% tariff on Mexican steel.
Narendran emphasised that Chinese steel is often sold at a loss, making it unsustainable in a market economy. “In India, where we have ample iron ore, a vibrant market, and investors willing to develop the steel industry, it is crucial not to let predatory imports derail our progress,” he added.
