The domestic steel industry has drawn the government’s attention to imports from South Korea and China saying the consequent lowering of prices is hurting local producers.
Imports of steel products from China surged during the first quarter of this financial year, even as South Korea remained the highest steel exporter to India despite a year-on-year decline in shipments.
“A sharp rise in imports of finished steel was recorded in the first quarter of the current financial year. The surge in imports, driven by countries with free trade agreements, as well as China, is eating into domestic demand,” Ranjan Dhar, chief marketing officer, ArcelorMittal Nippon Steel, said.
Imports of steel products in April-June stood at 2.23 million tonnes, 31% more than 1.70 mt a year ago. Imports of metal products, including finished steel, scrap and ferro alloys, surged during this period.
According to official data, imports of steel from South Korea fell to around 713,000 tonnes in the first quarter of this fiscal from about 686,000 tonnes a year ago. However, Chinese steel exports to India surged to about 570,000 tonnes from around 352,000 tonnes a year ago.
“The current challenge goes beyond a simple supply-demand shift. It involves the issue of predatory pricing – a practice that is severely harming this key sector,” said Dhar.