Increase in import duty on steel from China is required by the Ministry of India

The Ministry of Steel Industry has asked the Ministry of Finance to influence the quantitative restrictions on the volume of steel imported into Indian ports. This is due to an attempt by China to massively sell steadily growing volumes of steel to India. The Ministry of Steel is proposing to immediately double the import duty on value-added steel products to 15 percent from the current 7.5 percent.

In addition to China, Japan, South Korea and Ukraine also follow the same path. The fact is that India is faced with a huge demand for iron ore and alloys, and China, exporting its products to India, continues to increase pressure on Indian producers.

The ministry's proposals are based on data from metallurgical companies over the past month, which say the surge in imports from China is hurting them as they continue to grapple with iron ore shortages and subdued demand in the markets. Citing data provided by metallurgists, the ministry said total steel imports from China rose 100 percent and 51 percent from South Korea. Imports of hot rolled flat products increased by 57 percent. That being said, China had a 460 percent increase, while South Korea had a 259 percent increase.

SAIL CS Chairman Verma believes China is exporting a steel product category that finds widespread use in the construction sector, and steel producers have benefited from lower duties and export advantages.