Indian Steelmakers Urge Government for Minimum Import Price Amid Global Slump

Indian steelmakers are urging the government to impose a minimum import price amid a global slump in steel prices. Despite a 12% interim safeguard duty, domestic steel prices remain under pressure. Industry executives say the current levy is inadequate and the industry needs extended support to meet steel output goals. Analysts suggest that increasing safeguard duty may not be the only measure to protect the domestic industry, and that the government should also consider protecting consumers.

Indian steelmakers are urging the government to impose a minimum import price amid a global slump in steel prices. Despite a 12% interim safeguard duty, domestic steel prices remain under pressure. Industry executives say the current levy is inadequate and the industry needs extended support to meet steel output goals.

The request comes as steel producers face a critical supply crunch for low-ash metallurgical coke, a key steelmaking raw material. The industry has called for a near sevenfold increase in import quotas, seeking 9.3 million metric tons, with the largest share of additional shipments sought from Indonesia, Japan, and Poland [1].

Domestic steelmakers, including JSW Steel and ArcelorMittal Nippon Steel India, have expressed concerns over the current import curbs, arguing that the restrictions disrupt their expansion efforts due to the difficulty in sourcing preferred grades locally. Imports of low-ash metallurgical coke have more than doubled over the past four years, with major suppliers including China, Japan, Indonesia, Poland, and Switzerland [1].

Analysts suggest that increasing the safeguard duty may not be the only measure to protect the domestic industry. The government should also consider protecting consumers from the impacts of the global price slump. The federal Ministry of Commerce and Industry did not respond to a Reuters email seeking comments [1].

References:
[1] https://finance.yahoo.com/news/exclusive-india-steelmakers-seek-near-092305941.html