- 05 Dec 2022
- ICICIdirect Research
Higher imports hurt prospects of domestic steel players
News:
As per media sources, foreign steel is increasingly finding its way to Indian shores as large producers like Japan, South Korea and Vietnam direct their excess production towards India amid a slowdown in key markets like Europe and the US. Data shows that between April and October 2022, imports served 10% of India's total steel demand. The country turned a net importer of steel in October as total imports exceeded the total export of steel from India
View:
Currently there has been a rise in steel imports as the global prices and demand is weak. Rising imports does hurt the prospects of domestic steel players. Steelmakers from many countries including Japan are selling the alloy in India at prices far lower than those prevalent in their own domestic market, amounting to dumping, prompting the Indian steel lobby to seek the government's intervention. The Indian Steel Association (ISA) has approached the ministry of steel to seek World Trade Organization compliant measures to reduce the import of steel.
Impact:
Negative