JSW Group's Sajjan Jindal raises alarm over rising Chinese steel imports

JSW Group managing director and billionaire industrialist Sajjan Jindal.

JSW Group managing director and billionaire industrialist Sajjan Jindal has raised concerns over rising Chinese imports, saying they were affecting domestic steelmakers’ margins.

"Several countries have raised barriers against steel imports, and the Indian steel industry is engaged with the government to ensure a level playing field," Jindal said during the company's annual general meeting on July 26.

The comments come as elevated imports pressured domestic steel prices, hitting earnings of the steelmaker even as raw material cost remained low. The steelmaker expects the prices to remain rangebound and not dip further in the coming quarters.

JSW Steel reported a 64 percent fall in net profit in the June quarter, hit by lower volumes, inventory losses and subdued exports. Elevated imports pose a challenge to the domestic steel industry, it said a statement.

Last week, JSW Steel chief executive Officer Jayant Acharya told analysts that the company was talking to the government, seeking certain trade measures to restrict steel imports from China and FTA (free trade agreement) countries.

According to reports, in 2023-24, India saw a significant rise in steel imports at 8.3 million tonnes, which was higher than 7.5 million tonnes it exported.

Jindal also flagged geolpolitical risks, particularly their impact on commodity and energy prices. The JSW MD said he remained bullish on India demand, which was being powered by infrastructure development and robust demand from all major steel-consuming sectors.

"India’s outperformance is expected to continue, with rising capacity utilisation levels and healthy balance sheets boosting private capex. Investments in energy transition and the PLI scheme are additional tailwinds. JSW Steel is committed to playing a pivotal role in India’s growth," he said.

The company plans to scale up its capacity to 50 million tonnes per annum in India by FY31, up from 28.3 MTPA.