Steel ministry begins industry consultations as imports exceed exports

livemint.com:

NEW DELHI, MUMBAI : The ministry of steel has begun consultations with domestic producers to explore strategies for reining in imports as these have exceeded exports from India, the world’s second-largest producer of the alloy. India imported 4.3 million tonnes of steel between April and November this year, as against exports of 4 million tonnes, becoming a net importer of the alloy. Experts attribute the shift in the trade balance to low international prices of steel and higher domestic prices, which not only made imports viable but also inhibited exports.

Indian steel industry executives allege that Chinese producers are dumping steel in international markets given low demand in the Middle Kingdom. This has not only subdued international steel prices, but also made Indian steel uncompetitive in many key markets. Ministry officials met with industry executives on Wednesday to discuss the situation, and have sought data and inputs from the industry and other stakeholders, said people in the know.

The ministry did not immediately reply to queries on the matter. “India transitioned into a net importer during the first seven months of this year, mostly on the back of high domestic prices, allowing cheaper imports from countries like China and Vietnam to seep into the Indian market," said Priyesh Ruparelia, vice president, co-group head, corporate sector ratings, Icra Ltd. During September and October, benchmark hot-rolled coils (HRC) of steel from China were available at a discount of 13-14% to domestic steel, data from SteelMint show.