• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 6 days By Kellen McGovern Jones - "BlackRock Behind New TX-LA Offshore Wind Farm"
  • 1 day Solid State Lithium Battery Bank
  • 13 days Natron Energy Achieves First-Ever Commercial-Scale Production of Sodium-Ion Batteries in the U.S.
  • 2 hours Bad news for e-cars keeps coming
  • 12 days The United States produced more crude oil than any nation, at any time.
Raw Material Shortages Weigh on EU Ammunition Production

Raw Material Shortages Weigh on EU Ammunition Production

An investigation revealed the EU's…

Merger Mania Hits the Mining Sector

Merger Mania Hits the Mining Sector

Rising demand for raw materials…

Metal Miner

Metal Miner

MetalMiner is the largest metals-related media site in the US according to third party ranking sites. With a preemptive global perspective on the issues, trends,…

More Info

Premium Content

U.S. Steel Tariffs Send Shockwaves Through Indian Steel Industry

  • India's steel industry is facing a surge in steel imports, particularly from China.
  • Weak domestic demand in China is prompting the country to sell off its surplus steel stocks at competitive rates.
  • The U.S. has imposed new steel tariffs, which could lead to even more Chinese steel being diverted to India.

Via Metal Miner

India’s steel industry currently finds itself in a stressful predicament. Already reeling from cheap steel imports, the country is now even more worried about a surge of Chinese imports following the imposition of fresh tariffs on Chinese steel by U.S. President Joe Biden. Alongside the U.S., India and many other countries around the world have long desired a more “level playing field” for the trade of steel, aluminum, and other metals. However, these new steel tariffs may actually make that more challenging.

How U.S. Steel Tariffs Affect the Indian Steel Industry

As MetalMiner previously reported, India concluded the financial year 2023-2024 as a net importer of finished steel, causing concern among industry experts nationwide. Now, recent moves from the U.S. could compound the situation for the Indian steel industry. According to a statement issued by the White House, the tariff rate on certain steel and aluminum products under Section 301 will go up from 0-7.5% to 25% in 2024. Many now fear that at least some portion of the steel earmarked for the U.S. will end up diverted to Indian shores.

Steel experts in India are now trying to figure out how this shift in steel imports could influence prices in that country. Alok Sahay, Secretary General of the Indian Steel Association (ISA), a representative body of Indian steelmakers, told Business Standard that India remains vulnerable to price surging and predatory imports. He pointed out that India already faces a significant threat from such imports, as all major steel-consuming economies were now in the process of stopping the entry of steel from over-producing countries like China.

Despite some signs of economic recovery in China, weak domestic demand for steel continues to prompt the country to sell off its surplus stocks at competitive rates. This not only includes selling stock to Indian buyers, but also to countries like the U.S. as well as parts of Eastern Europe. With the new U.S. tariffs kicking in, logic dictates that the situation may only get worse as Chinese steelmakers try and find alternate markets to dump their steel. Steel industry fluctuations like these are covered extensively in MetalMiner’s free weekly newsletter.

Chinese Exports Keep Increasing

A look at recent trade record books for China shows an upward graph in terms of steel exports. In April this year, steel exports remained above the nine million tons mark. As with India, this “excess” steel continues to add to trade tensions between China and other nations. For instance, the European Commission recently initiated an investigation into flat-rolled iron or steel products coated with tin from China to determine if the prices are excessively low. This anti-dumping investigation stems directly from a complaint by Eurofer, the European Steel Association, which oversees trade policy in the 27-nation EU.

Despite protests by steelmakers from multiple countries, there seem to be no signs of steel production in China slowing down for now. Evidence for this includes the high monthly import figures of iron ore, a critical raw material in the making of steel. In fact, according to this report, ore imports already hit the 100 million tons mark for the third time this year.

However, some analysts remain optimistic that China’s steel exports may decrease in the coming months due to a crackdown on the tax evasion boosting overseas sales. If this fails to occur, it’s possible the country might manufacture more than 100 million tons of steel this year. Naturally, the reduced domestic consumption means a large chunk of this steel will end up exported elsewhere.

What is India Doing?

Indian finished steel imports totaled 8.3 MT in the last fiscal year. This represents an increase of 38.1% from a year earlier. Concerned by the rising imports needed to meet India’s growing steel consumption, steel mills are urging the Indian Government to intervene and implement safeguard measures.

The association representing steel companies previously requested similar interventions. However, the Ministry of Steel has yet to respond to these demands. One reason for that could be because India is in the middle of central elections. Until a new government is in place, not little will likely be done to protect Indian steel mills. 

By Sohrab Darabshaw

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News