The government is likely to tighten the quality credentials to rein in large-scale dumping of substandard steel, largely from China, according to a report by the Economic Times.
The development follows a comprehensive review of local production and imports by the steel ministry in early October that revealed the sector’s increased vulnerability to global trade diversions, ET quoted officials as saying.
India was a net importer of steel through the first five months of 2024-25. Official estimates show that 1.92 million tonnes (mt) of steel was shipped from India, while 3.45 mt of the metal reached the Indian shores in this period.
Stringent quality checks are expected to put a leash on imports as Chinese steelmakers scour for markets amid lower demand and higher import levy slapped by the US and the EU. This made India the ideal dumping ground. Import of multiple grades of steel is permitted now, despite quality control orders on the basis of a no-objection certificate (NOC) from the steel ministry. The ministry, as the first step, will issue permits only for grades of steel that are not available locally, the officials shared with the daily.
Import of 1,127 steel grades was allowed despite quality control through NOCs issued from time to time by the steel ministry. Norms have been issued for 1,279 grades through 151 quality control orders (QCOs). “This will soon be plugged as the ambit of QCOs is being expanded,” said a senior official, who did not wish to be identified.
India imports around 400,000 tonnes of non-Bureau of Indian Standards (BIS) compliant steel annually, shelling out Rs 4,200 crore.
The Centre made the steel ministry approval mandatory for imports which had not been cleared by the BIS last October. The move was aimed at a crackdown on substandard goods. Manufacturers or traders need to get prior approvals from the BIS for selling items covered under the QCO in India.
As part of the review, the steel ministry also held consultations with stakeholders in the backdrop of growing apprehensions over rise in imports of steel from China and Southeast Asian countries.
The US and Canada both have slapped 25 percent safeguard duty to protect their homegrown steel industries. Similarly, the European Union has charged 25 percent duty beyond quantitative quota. Countries such as Turkiye, Indonesia, Malaysia, Vietnam, and Japan came next with similar trade actions to protect their markets.
The Indian government initiated an antidumping investigation for cold-rolled non-oriented electrical steel from China in September following complaints by South Korean and Taiwanese steelmakers operating through their subsidiaries in India.
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