Indian Steel Producers Lobby For Safeguard Duty to Curb ASEAN Steel Influx

ENA Global 2024-12-02 15:50:31 New Delhi, Dec 2 (KNN) India is considering imposing safeguard duties to address concerns about an anticipated surge in steel imports from ASEAN countries under the India-ASEAN Free Trade Agreement (FTA). The move comes as Chinese companies establish large-scale steel manufacturing capacities in the ASEAN region, triggering fears of a potential flood of low-cost steel into India. Discussions between the steel and commerce & industry ministries are underway ahead of the next round of India-ASEAN FTA review talks slated for February as reported by ET. Chinese firms are investing heavily in the ASEAN region, with an additional 97 million tonnes (mt) of blast furnace-basic oxygen furnace (BF-BOF) capacity expected to come online within the next 5-6 years. Industry experts warn that the regions steel consumption, currently around 75 mt annually, will be insufficient to absorb this capacity, leaving excess steel to target export markets such as India. These capacities are only meant for exports due to the existing FTA and limited consumption growth in the ASEAN region, explained Alok Sahay, Secretary General of the Indian Steel Association. India is particularly vulnerable because it offers low-to-zero tariffs compared to markets like the EU or the US. The South East Asia Iron and Steel Institute (SEASI) projects ASEAN steel production capacity, including countries like Vietnam, Thailand, and Indonesia, will reach 145 mt by 2026. Indonesia alone is set to add 20 mt through partnerships with Chinese firms. However, the nations consumption stands at only 17 mt, highlighting the export-oriented nature of these projects. Industry leaders are concerned about the implications for India's steel market, where production and consumption are nearly balanced. Indias finished steel production reached 139 mt in FY24, with consumption at 136 mt. Excess steel imports could depress domestic prices, hurting Indian producers, said Praful Venugopal, CEO of Mittal Steel, Indonesia. India's imports of iron and steel from ASEAN countries climbed 19 per cent to Rs 29,252 crore in 2023-24, intensifying calls for protective measures. As policymakers deliberate, the evolving trade dynamics are set to feature prominently in Februarys FTA review discussions. (KNN Bureau) 40111 https://knnindia.co.in/news/newsdetails/global/indian-steel-producers-lobby-for-safeguard-duty-to-curb-asean-steel-influx 2024-12-02 15:50:31 knnindia.co.in Indian Steel Producers Lobby For Safeguard Duty to Curb ASEAN Steel Influx