Concerned over growing steel as well as iron ore imports, especially that of Boron-mixed steel from China, which has made a serious dent in the Indian market, domestic steel makers have urged Finance Minister Arun Jaitley to impose higher duties on shipments from abroad as well as implement Quality Control Order to ensure that all imported steel products are duly certified by the Bureau of Indian Standards.
Industry sources said that if the sustainability of the domestic steel market is to be maintained and the Government’s ‘Make in India’ dream is to be realised, then it is important that imports are curbed at the earliest.
The pitch for higher import duty and maintaining quality control on steel products from other nations, especially cheaper Boron-mixed steel from China, has been made by the domestic steel industry as part of their charter of demands for the forthcoming Union Budget.
The domestic steel industry’s worries are driven mainly by the fact that overall steel imports have grown by over 60 per cent over the past one year. During the April-December period of the current fiscal, steel imports to India were to the tune of 8 million tons, which was double of the 4 million tons imported during the corresponding period of FY14.
While growing steel imports are a cause for concern for the domestic industry, it is the burgeoning shipments from China that have forced steel makers in India to press the panic button. Boron-mixed steel from China is increasingly being used by Indian manufacturers for products like TMT bars, rods and plates, as it is far cheaper than domestic steel products.
In the first half of 2014-15, imports from China had gone up by more than 150 per cent compared to the corresponding period of the previous fiscal. Several leading steel entities have been pressing for higher import duties on Chinese steel products.
The Steel Ministry had in November 2014, sent representations to the Central Board of Excise and Customs, seeking imposition of higher duties on large-scale imports of reinforced bars and TMT bars, mainly from China.
Steel Authority of India ltd Chairman CS Verma, who is also the president of Indian Steel Association (ISA), told The Pioneer that they have requested the Government to stem the tide of accelerating steel imports into India, through levy of a higher import duty.
“There was an increase of around 60 per cent in import of steel in April-December 2014 as compared to the same period in the previous year. Increase of import to such an extent has been adversely affecting the domestic steel industry, therefore, urgent Government action has been requested by the ISA like full adherence and compliance of the Quality Control Order by all steel products being imported into India,” Verma said.
India plans to achieve the target of producing 300 million tons of steel per annum by 2025, and according to industry insiders, the burgeoning import of steel products from China needs to be stopped, if this vision is to be achieved. Currently India produces 82 million tons of steel per annum.