Indian Steel Industry Seeks Protection from Chinese Imports
The Indian government is currently reviewing a request to impose a temporary tax on steel imports from China, according to JSW Group Chairman Sajjan Jindal. This request comes amidst concerns from the Indian steel industry about the impact of Chinese steel dumping on domestic prices and company earnings.
Jindal, speaking at an industry event in Bengaluru, highlighted the industry's patience with the steel ministry in seeking protection against Chinese steel. He also emphasized efforts to convince the government to prevent Chinese steel from entering the country through Free Trade Agreement partners.
The process of studying the request for a temporary tax is ongoing, with consultations involving the user industry. However, there has been no response from the ministries yet.
Provisional government data indicates that finished steel imports into India reached a seven-year high of 5.7 million metric tons during the April-October period. This surge in imports has raised concerns about the potential for thin margins for the steel industry, limiting surplus funds for investments and capacity expansion.
Earlier this month, Tata Steel CEO TV Narendran also expressed concerns that continuous steel imports could negatively impact the industry's investment plans.
Meanwhile, JSW Group is also awaiting regulatory approval for the initial public offering (IPO) of its cement business. Jindal anticipates that the Securities and Exchange Board of India (SEBI) will approve JSW Cement's proposed $477 million IPO by January 2025, following its previous hold in September.