Steel Ministry Seeks Investigation Into Steel Imports Amid Rising Concerns

New Delhi, Aug 1 (KNN) The Indian government is taking steps to address the surge in steel imports, particularly from China and Vietnam, as the country faces challenges in its domestic steel industry.

A senior government official, speaking on condition of anonymity, revealed that the Ministry of Steel has requested the trade ministry to investigate these imports and provide recommendations to the finance ministry for potential action.

This move comes as India, the world's second-largest crude steel producer, has become a net steel importer in the fiscal year ending March.

Recent government data indicates that finished steel imports reached a five-year high in April and May, raising concerns within the industry.

The steel sector, including major players like JSW Steel, has been in discussions with the federal government regarding possible trade measures to address the rising imports.

Simultaneously, the steel ministry has engaged with European Union officials, urging them to reconsider imposing higher taxes on carbon-producing industries.

In a related development, India has not accepted an EU proposal to levy increased taxes on carbon-intensive industries, as part of the EU's plan to achieve net-zero greenhouse emissions by 2050.

This plan, approved last year, would affect imports of high-carbon goods such as steel, aluminium, and cement.

Additionally, the steel ministry is working with domestic mills to diversify their sources of coking coal, a crucial raw material for steelmaking. The government aims to reduce reliance on Australia, currently the largest supplier, by exploring imports from countries like Russia, Canada, and the United States.

Indian steel companies consume approximately 70 million metric tons of coking coal annually, with imports accounting for about 85  of total requirements.

Some Indian firms have also initiated trial imports of coking coal from Mongolia, with companies such as JSW Steel and the state-owned Steel Authority of India (SAIL) reportedly poised to receive shipments after extended negotiations.

As the situation develops, the steel and trade ministries have not yet responded to requests for comment on these matters.

(KNN Bureau)