Tata Steel boss Narendran flags concerns on Chinese imports, warns of impact on the industry's capex

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26 Aug, 2025 12:21

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Tata Steel Managing Director T V Narendran has tabled the alarming influx of Chinese imports, echoing concerns shared by other manufacturers such as JSW Steel and Jindal Steel & Power. He pointed to the 'predatory pricing' employed by Chinese steelmakers, cautioning that this could significantly derail investment plans in the domestic steel industry.

"If you look at our capex plan,  or that of JSW Steel or JSPL or Arcelor Mittal, it's very significant — no other sector is announcing so much capex every year. But though the Chinese steel companies are losing money at these prices, they're still selling. That's predatory pricing and that's not ok. It'll derail the investment plans of this industry," Narendran told Moneycontrol in an exclusive interview on August 1.

Last week,  JSW Group Managing Director and billionaire industrialist Sajjan Jindal also highlighted similar concerns.

The comments came as elevated imports put domestic steel prices under pressure.  According to reports, in 2023-24, India saw a significant rise in steel imports at 8.3 million tonnes, against the 7.5 million tonnes it exported.

During the first quarter, the domestic market saw an increased supply of the commodity, driven by a preference for cheaper imported alternatives and need-based procurement.

Meanwhile, Indian mills are also facing a challenge in the export market as China has been targeting key markets for Indian mills, such as Vietnam, the Middle East, and Turkey, according to analytics firm BigMint.

"It really doesn't make sense to export and that's why most Indian producers are happier selling in the domestic market, where the demand has been reasonably strong. Exports will pick up only when there is some restriction on Chinese shipments, because if China exports 100 million tonnes of steel at these prices, it's very difficult for anybody else to sell in the export market," Narendran added.

He expects exports to comprise less than 5 percent of the company's  sales in FY25 compared to 10 per cent in FY24.