Steel, trade ministries in discussion over rising Chinese imports: Source

NEW DELHI: Steel and trade ministries are currently in discussions regarding the increasing imports, especially low-cost products from China, amidst ongoing demands from leading manufacturers for increased tariffs, as per a source aware of the matter.

"The steel ministry has apprised the commerce ministry on rising imports and industry has sought a probe," said the source on condition of anonymity.

India became a net importer of steel in the previous fiscal year with finished steel imports reaching a five-year high to 1.1 million metric tons in April and May, up by 19.8% from the same period last year, as per provisional government data.

Meanwhile, leading Indian steel manufacturers, such as Tata Steel, have expressed their growing concern over Chinese imports. The country's steel mills, alarmed by the significant increase in imports, have repeatedly called for government intervention and higher import taxes. However, the ministry of steel has resisted such calls, citing strong local demand.

Ranjan Dhar, director and vice president of sales and marketing at ArcelorMittal Nippon Steel India, suggested that the government should consider increasing the basic customs duty on steel from 7.5% to 12.5% due to the surge in imports.

"Immediately, we should go back to 12.5% duty regime, which was there earlier," said Dhar.