Steel industry flags price pressure from cheap imports

Ahead of the key meeting called by the steel ministry with the industry captains on Monday to discuss the impact of rising steel imports, companies have raised the issue of cheaper ‘substandard’ inflows from China, Vietnam, and South Korea, saying they are setting the benchmark for domestic prices and squeezing the profitability of Indian producers.

- SAKET KUMAR

Abhyuday Jindal, managing director of Jindal Stainless, said that growing imports of ‘subsidised and substandard’ steel are creating unfair competition for Indian manufacturers. “These imports destabilise prices and pose safety and quality risks, especially in sectors like infrastructure, automotive, food, pharma, and construction,” Jindal told Business Standard.

“India has enough capacity to meet demand, but expecting producers to match artificially low import prices is neither practical nor sustainable,” he said.

Experts say while the global oversupply accounts for most of the realisation differential, Indian producers do face structural limitations due to higher logistics costs and dependence on imported raw materials, primarily coking coal.