India considers tighter steel import norms to curb dumping

15 Oct 2024 CW Team

India became a net importer of steel during the first five months of the current fiscal year, importing 3.45 million tonnes (mt) compared to exports of 1.92 mt. With sluggish demand and high import duties in markets like the US and the EU, international producers have increasingly targeted India as a dumping ground for cheap steel.

Currently, steel imports are allowed through a no-objection certificate (NOC) from the steel ministry, even for multiple grades subject to quality control orders (QCOs). However, the ministry now plans to limit NOCs to only those grades that are unavailable locally. Officials confirmed that of the 1,279 steel grades covered under 151 QCOs, 1,127 were permitted through NOCs. “This loophole will soon be addressed by expanding the scope of QCOs,” said an official.

India imports approximately 400,000 tonnes of non-Bureau of Indian Standards (BIS) compliant steel annually, valued at around Rs 42 billion. To combat this, the government mandated in October 2023 that imports lacking BIS certification must first secure approval from the steel ministry.

In response to rising imports from China and Southeast Asia, the steel ministry has engaged stakeholders for further consultations. Globally, several countries—including the US, Canada, and the European Union—have implemented 25% safeguard duties on steel to protect their industries, while nations like Turkiye, Indonesia, and Japan have taken similar protective actions.

Additionally, India launched an anti-dumping investigation into cold-rolled non-oriented electrical steel imports from China in late September, following complaints by South Korean and Taiwanese manufacturers with operations in India.

The Indian government is preparing to tighten quality control measures on steel imports following a rise in low-quality steel dumping, particularly from China, according to officials familiar with the matter. This development follows a recent review by the steel ministry, which highlighted increasing risks from global trade diversions impacting the domestic steel sector. India became a net importer of steel during the first five months of the current fiscal year, importing 3.45 million tonnes (mt) compared to exports of 1.92 mt. With sluggish demand and high import duties in markets like the US and the EU, international producers have increasingly targeted India as a dumping ground for cheap steel. Currently, steel imports are allowed through a no-objection certificate (NOC) from the steel ministry, even for multiple grades subject to quality control orders (QCOs). However, the ministry now plans to limit NOCs to only those grades that are unavailable locally. Officials confirmed that of the 1,279 steel grades covered under 151 QCOs, 1,127 were permitted through NOCs. “This loophole will soon be addressed by expanding the scope of QCOs,” said an official. India imports approximately 400,000 tonnes of non-Bureau of Indian Standards (BIS) compliant steel annually, valued at around Rs 42 billion. To combat this, the government mandated in October 2023 that imports lacking BIS certification must first secure approval from the steel ministry. In response to rising imports from China and Southeast Asia, the steel ministry has engaged stakeholders for further consultations. Globally, several countries—including the US, Canada, and the European Union—have implemented 25% safeguard duties on steel to protect their industries, while nations like Turkiye, Indonesia, and Japan have taken similar protective actions. Additionally, India launched an anti-dumping investigation into cold-rolled non-oriented electrical steel imports from China in late September, following complaints by South Korean and Taiwanese manufacturers with operations in India.

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