Steelmakers seek higher tariffs as Chinese imports surge

Representational picture of a metal plant.
| Photograph Credit score: Particular Association

Steelmakers have known as on the federal government to double tariffs on metal imports to curb a surge in cheaper metal shipments from China, in line with a letter from an business affiliation seen by Reuters.

The world’s second-biggest crude metal producer grew to become a internet importer of the alloy within the fiscal yr by means of March 2024 and the pattern has continued into the present yr.

Completed metal imports from China hit a seven-year excessive over April-August whereas total completed metal imports hit a six-year excessive of three.7 million metric tons.

In a letter dated Sept. 2, the Indian Metal Affiliation (ISA) known as on Minister of Finance Nirmala Sitharaman to double the customs obligation on metal imports to fifteen%.

ISA represents main metal producers reminiscent of JSW Metal , Tata Metal, ArcelorMittal Nippon Metal India and state-run Metal Authority of India.

“Trade is anxious concerning the surge in imports of metal into India at predatory costs and the risk posed by China’s downturn,” ISA mentioned within the letter to Sitharaman.

The pattern of cheaper metal imports is more likely to proceed, ISA mentioned.

“There may be an imminent risk of additional surge in imports within the coming months,” ISA mentioned.

As surplus Chinese language metal makes its method into international markets, Japanese and European metal makers have sought import curbs. Within the U.S., a 25% tariff on Chinese language metal takes impact on Friday.

Metal minister H.D. Kumaraswamy this month mentioned Indian metal makers have been “struggling” due to cheaper imports.

In its letter, ISA additionally urged Sitharaman to impose an additional 25% import tax on metal.

ISA has additionally sought the removing of the “lesser obligation rule” underneath which the import obligation must be mounted at a degree solely to keep away from harm to Indian producers relatively than fixing the import tax at a better price.

The Ministry of Finance and ISA didn’t reply to Reuters emails in search of remark.