BIS Mark To Vietnamese Steel Maker Worries Domestic Steel Producers

New Delhi, Jun 5 (KNN) Steel imports from Vietnam are putting pressure on domestic Indian steel manufacturers, with the recent approval of Vietnamese steel producer Formosa Ha Tinh by the Bureau of Indian Standards (BIS), cheaper imported steel is expected to flood the Indian market.

Last week, a consignment of 35,000-40,000 tonnes of hot-rolled coil (HRC) steel was booked from Vietnam to India at USD 590-595 per tonne, undercutting domestic prices by around Rs 2,000-3,000 per tonne.

After including port charges, the imported Vietnamese steel costs around Rs 51,700 per tonne compared to Rs 54,000-55,000 for domestic HRC.

Indian steel giants like Tata Steel have raised concerns about these rising cheap imports acting as a "dampener" on domestic steel pricing. TV Narendran, Tata Steel's MD, stated, "If it is unfairly priced imports, we should stop it."

He argued against letting cheap imports "derail" the domestic steel industry that is investing heavily in new capacity.

Vietnam exported nearly 1 million tonnes of steel to India in FY24, up from negligible amounts previously, benefitting from the free trade agreement between India and ASEAN countries.

Market experts forecast steel imports will continue rising in the first half of FY25 from Vietnam as well as China, South Korea and Japan, further squeezing Indian manufacturers' margins.

The surge has prompted calls for domestic firms to align their prices closer to global rates to curb cheap imports.

Imports could start declining from September if this pricing correction happens, according to analysts.

(KNN Bureau)