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Indian Steel companies ask govt to put safeguard tariffs on Chinese Steel - Report

Steel News - Published on Thu, 16 May 2019

Image Source: Reuters
Reuters reported that The US-Chinese tariff conflict, which recently escalated, has unnerved Indian steel producers. They fear that China could dump excess steel on India in the hope of making up for losses incurred by their metal industry, which has been hit by Washington’s efforts to offset its trade deficit with Beijing. The Indian steel industry has asked the country’s government to protect it from growing Chinese imports and to introduce 25% safeguard duties on metals allegedly being dumped on India at prices below the production cost.
Reuters reports that during a meeting last month JSW, the Steel Authority of India, Tata Steel, Jindal Steel and Power, which control the country’s steel production, had asked government officials for protection amid the US-Chinese tariff row.
According to the news agency, Steel Secretary Mr Binoy Kumar indicated that global surplus capacity poses a risk to the country’s industry and expressed the opinion that India needs protection from predatory imports. However, he also revealed that the decision regarding safeguard duties is yet to be made. Reuters was not given comments from the Steel Ministry and the involved companies.
However, the agency cited a government source as voicing concern at the possible impact of the trade conflict between Beijing and Washington, saying that this sector in India, which is rated to be the world’s second-largest steel producer, is vulnerable.
The Source indicated that “China has excess (steel) capacity and there is a concern they could re-route it through other countries like Vietnam and Cambodia into India.”

Reuters also points out that New Delhi fears that Beijing could re-route the flow of electronic items, toys, furniture, and organic chemicals to other Asian countries.
Relations between Washington and Beijing have been tense since US President Donald Trump last June decided to impose 25% tariffs on USD 50 billion worth of Chinese goods in a bid to fix the US-Chinese trade deficit. Since then, the sides have exchanged several rounds of trade duties. During this time, bilateral trade talks to end the dispute have been ongoing.

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Posted By : Sanju Moirangthem on Thu, 16 May 2019
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