Why Vietnamese steel makes Indian industry uneasy

livemint.com:

ArcelorMittal Nippon Steel (AM/NS) India, a prominent steel manufacturer with an integrated steel plant at Hazira in Gujarat. “The apprehension is that other mills from FTA countries and China may also get a renewal of their licences for exporting to India," analysts at market intelligence & consulting firm BigMint said, adding that this was a worrisome factor for Indian mills. AM/NS’s Dhar added that with India now available as an option, Vietnamese steelmakers will see the country as a lucrative avenue to dump excess production.

“This may also affect the significant investments already made by Indian steel producers to increase their steel capacities," he added. Formosa Ha Tinh and BIS didn’t respond to queries sent by Mint at the time of going to print. Vietnam's steel industry relies heavily on exports, with nearly half of its production being shipped abroad, Dhar said, adding that this is partly because China exports a lot of cheap steel to Vietnam, flooding the local market there and putting pressure on their domestic players to seek alternative global markets.

Government data shows that India’s domestic production of crude steel totalled 143.6 mt in FY24, and consumption was at 136 mt. About 8.3 million tonnes (mt) of finished steel was imported in FY24, a 34% growth compared to 6 mt in FY23. Steel exports during the year came in at 7.5 mt, turning the country into a net importer of steel.