India Mulls Higher Tariff on Cheap Steel Imports

14 Oct 2024 , 12:30 PM

According to news reports, the government may soon broaden the scope of its strict quality standards in response to a rise in the widespread dumping of inferior steel, mostly from China.

It follows the steel ministry’s thorough examination of domestic output and imports in early October, which they said highlighted the industry’s heightened susceptibility to disruptions in international commerce.

In the first five months of this fiscal year, India was a net importer of steel. Official estimates state that during this time, the nation bought 3.45 million tonnes (mt) of the metal while exporting 1.92 million tonnes (mt).

Tight quality controls have the potential to stop the flood of imports as manufacturers search for markets in the face of weak demand and high tariffs levied by the US and the EU, increasing the possibility of dumping into India. Currently, despite quality control regulations, imports of different grades of steel are allowed as long as the steel ministry issues a no-objection certificate (NOC).

According to the officials who talked to ET, the ministry would only now grant permits for steel grades that are unavailable locally.

Despite quality control measures implemented by the Steel Ministry through periodic NOCs, the import of 1,127 steel grades was permitted. 1,279 grades have norms given through 151 quality control orders (QCOs).

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