India was a net importer of steel in the first five months of this financial year. The government could soon expand the ambit of its stringent quality norms amid an increase in large-scale dumping of substandard steel, largely from China, said officials.
It comes after a comprehensive review of local production and imports by the steel ministry in early October which revealed the sector’s increased vulnerability to global trade diversions, they said.
India was a net importer of steel in the first five months of this financial year. According to official estimates, the country exported 1.92 million tonnes (mt) of the metal but imported 3.45 mt during this period.
Stringent quality checks can stem the tide of imports as producers scour for markets amid sluggish demand and steep duties imposed by the US and the EU, which has increased risk of dumping into India. At present, import of multiple grades of steel is permitted despite quality control orders on the basis of a no-objection certificate (NOC) from the steel ministry.
Consultations Held with StakeholdersThe ministry will now issue permits only for grades of steel not available locally, according to the officials.
Import of 1,127 steel grades was allowed despite quality control through NOCs issued from time to time by the steel ministry. Norms have been issued for 1,279 grades through 151 quality control orders (QCOs).
“This will soon be plugged as the ambit of QCOs is being expanded,” said a senior official, who did not wish to be identified.
India imports around 400,000 tonnes or Rs 4,200 crore worth of non-Bureau of Indian Standards (BIS) compliant steel annually.
In October last year, the Centre had made the steel ministry’s nod mandatory for imports which had not been cleared by the BIS, a move aimed at a crackdown on substandard goods. Manufacturers or traders need to get prior approvals from the BIS for selling items covered under the QCO in India.
As part of the review, the steel ministry also held consultations with stakeholders in the backdrop of growing apprehensions over rise in imports of steel from China and Southeast Asian countries.
The United States and Canada have both levied 25% safeguard duty to protect their respective steel industries. Similarly, the European Union has levied 25% duty beyond quantitative quota. Recently, trade actions have also been taken by countries including Turkiye, Indonesia, Malaysia, Vietnam, and Japan to protect their markets.
The government initiated an antidumping investigation into imports of cold-rolled non-oriented electrical steel from China in the last week of September.
The move followed due to complaints by South Korean and Taiwanese steelmakers operating through their subsidiaries in India.
