India's steel import for FY26 is expected to be as much as 50 percent lower compared to the last year, helped by the recently imposed safeguard duty, Steel Secretary Sandeep Poundrik told CNBC-TV18 on June 17, adding that the trend in April and May has shown a much lower levels imports as against the same period last year.
Steel Secretary Poundrik added that no decision has been taken on hiking the safeguard duty on imported steel from the current 12 percent, as of now, though the industry has made a proposal to the Directorate General of Trade Remedies (DGTR). He told CNBC-TV18 during a conversation, "DGTR is conducting its final investigation, and they are likely to conclude it by August. The safeguard duty imposed right now is provisional for 200 days, so, DGTR will give its final recommendation based on the current status and whatever the industry is saying. Based on that, Government will take a call, so as of now, I would not like to hazard a guess if the safeguard duty will be higher or lower."
Some news reports had recent said that the Centre may be considering doubling the safeguard duty on steel imports to as high as 24 percent on rising concerns over potential dumping of Chinese steel in the Indian market.
The safeguard duty, effective from April 21 for a period of 200 days, applies to flat-rolled products of non-alloy and certain alloy steels. It aims to shield domestic producers from a sudden surge in cheap imports, particularly from countries like China.
The domestic steel industry had welcomed the decision of the safeguard duty, adding that it has helped them. Tata Steel's MD TV Narendran had said after the March quarter earnings call that it is still a bit concerned about the export of steel out of China during March and April, "If the US and China reach a deal on tariffs, we have a better chance of that number (China exports) coming down. One of the reasons why this kind of volume has happened without much coming into India is also because a lot of Chinese exports are now going to Middle East and Africa, which were not the markets pulling a lot of steel earlier. That is reducing some pressure on Southeast Asia and India as far as Chinese exports are concerned."
The Steel Secretary said the DGTR shall need to take into account the prices of consumer goods that require steel, as well as the global situation along with the price of steel itself.
Secretary Poundrik added that some companies with a licence to import BIS certified steel have misused the norms, as has been found in the DGTR investigation, and action has been taken against them including the recommendation to cancel the permission. "All those loopholes are being plugged in, I can say that people can import steel if there is a BIS licence and if the company exporting to India has a BIS licence. We are trying to stop misuse of provisions or irregular import,"
At a time when global growth has been wobbly, India has emerged as a bright spot, especially in the consumption of steel, and Secretary Poundrik said the domestic steel consumption, at a per capita of 104 kilogram, is expected to rise significantly to Rs 155-160 kg by 2030, and even higher by 2035.
"We are the only major economy clocking double-digit (consumption) growth. Last three years, we have been clocking about 12 percent growth, that is nowhere else in the world where the steel growth is much lower at 0.5-1 percent. So, India is a bright spot in steel consumption scenario," said Sandeep Poundrik.
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