Indian Steel Industry Seeks Protection from Chinese Imports
The Indian government is currently reviewing a request from the domestic steel industry to impose a temporary tax on steel imports from China, according to JSW Group Chairman Sajjan Jindal. This request comes amidst concerns over the rising influx of Chinese steel, which has impacted domestic prices and company earnings.
Jindal, speaking at an industry event in Bengaluru, highlighted the industry's efforts to convince the government to prevent Chinese steel from entering the country through Free Trade Agreement partners. He expressed the industry's patience with the steel ministry as it studies the request for a temporary tax, a process involving consultations with 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 among domestic steel manufacturers, who fear that it could lead to thin margins, 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 looking forward to the 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.