Synopsis
Tata Steel's CEO, T.V. Narendran, discussed the government's serious consideration of anti-dumping duties on cheap steel imports. With overwhelming Chinese steel in the Indian market, the situation worsens with possible US tariff hikes. The Indian Steel Association has petitioned the authorities, highlighting the need for immediate action.Key Takeaways
- Government considered anti-dumping duties.
- Chinese steel imports flooding Indian markets.
- Potential US tariff hikes could impact exports.
- Indian Steel Association filed a petition for review.
- Decrease in India's steel exports observed.
Mumbai, Feb 20 (NationPress) Tata Steel's CEO and Managing Director, T.V. Narendran, expressed on Friday that the government is taking the steel sector's plea for anti-dumping duties very seriously, as the influx of inexpensive Chinese steel is overwhelming the Indian market. The situation appears even more concerning with the potential increase in US tariffs.
Narendran is optimistic that the government will soon provide an update following comprehensive clarifications from the industry.
The Indian Steel Association (ISA) has already submitted a petition to the Directorate General of Trade Remedies (DGTR) regarding the dumping matter, which is currently under examination.
In an interview with CNBC-TV18, Narendran highlighted that India is among the premier locations globally for steel production, with the Indian steel sector boasting modern and efficient plants. The nation is also rich in iron ore resources. However, the challenge lies in the low prices at which foreign competitors sell steel.
He noted that the profitability of the Chinese steel sector is largely negative, with many state-owned companies experiencing financial losses. In contrast, India's steel industry is predominantly privately operated, and without profitability, companies will hesitate to invest in expanding capacity.
Narendran pointed out that Tata Steel would face both direct and indirect consequences if the US President proceeds with proposed tariff increases on imports.
He emphasized that Tata Steel exports steel to the US, and a hike in tariffs would directly affect those shipments.
Moreover, the indirect effects could arise as steel exports from nations like China and Vietnam, adversely impacted by US tariffs, could lead to lower global prices, consequently affecting margins in India.
India's steel exports have plummeted by 28.9 percent to 3.99 million tonnes during the period of April to January in the current fiscal year, down from 5.61 million tonnes during the same timeframe last year. Currently, India is a net steel importer, with incoming shipments totaling 8.29 million tonnes for the same period in the financial year 2024-25, based on official statistics.
