Steel Ministry Seeks to Double Import Duty on Finished Steel to 15% in 2025-26 Budget

ENA Sectors 2024-12-26 18:16:12 New Delhi, Dec 26 (KNN) The Ministry of Steel has formally requested the Ministry of Finance to double the basic Customs duty on imported finished steel products from 7.5 per cent to 15 per cent in the upcoming Union Budget for 2025-26. This move aims to protect domestic steel manufacturers from the growing influx of cheaper steel imports, particularly from China, which have been undermining the profitability of local producers. According to sources familiar with the matter, the steel ministry believes that a higher import duty will help mitigate the adverse effects of rising imports of finished steel. Official data reveals that imports from China surged significantly in FY 2023-24, increasing from 23 per cent of total steel imports the previous year to 32 per cent. This surge has intensified competition for domestic steel producers, as the import price of Chinese steel remains significantly lower than the local cost, even with the current 7.5 per cent duty. In FY 2023-24, overall imports of finished steel grew by 38 per cent year-on-year (YoY) to reach 8.3 million tonnes (mt), with a further 41 per cent YoY increase in the first half of the current financial year to 4.7 mt. This influx of low-cost steel has put considerable pressure on Indian manufacturers, who face an uneven playing field due to the price disparity. The governments internal analysis suggests that even with an increase to a 12.5 per cent duty, the price of Chinese steel would still be lower than the domestic price. Hence, the steel ministry has advocated for a substantial increase in the duty to protect the industry. This move aligns with similar protective measures taken by other countries to shield their industries from a surge in Chinese imports. In parallel, the Directorate General of Trade Remedies (DGTR) has launched an investigation into the rising imports of certain flat steel products. Last month, the steel ministry also recommended imposing a 25 per cent safeguard duty on the entire flat steel value chain for two years to further protect domestic manufacturers from the growing import surge. (KNN Bureau) 40397 https://knnindia.co.in/news/newsdetails/sectors/steel-ministry-seeks-to-double-import-duty-on-finished-steel-to-15-in-2025-26-budget 2024-12-26 18:16:12 knnindia.co.in Steel Ministry Seeks to Double Import Duty on Finished Steel to 15% in 2025-26 Budget