JSW Steel's Jindal Highlights Pressure from Chinese Steel Imports on Indian Market
Friday, 26 July 2024, 12:37 IST
JSW Steel's Managing Director, Sajjan Jindal, addressed concerns about the impact of rising Chinese steel imports on the Indian steel industry during the company's annual general meeting on Friday. Jindal highlighted that the influx of Chinese steel is affecting the margins of Indian steelmakers, despite a growing demand for steel within the domestic market.
Jindal noted that the global steel market remains weak, with heightened imports into India exacerbating the challenges faced by local steel producers. He attributed these issues to the elevated production and export levels of Chinese steel, which are placing significant pressure on global steel prices. “Global steel demand remains weak, leading to rising imports into India and affecting domestic steelmakers’ margins. This is mainly because of elevated Chinese production and exports, pressuring global steel markets. Several countries have raised barriers against steel imports, and the Indian steel industry is engaged with the government to ensure a level playing field”, Jindal explained.
The Indian steel industry is currently grappling with both weak local demand and the downturn in China's real estate sector, which is affecting steel consumption. Sumit Jhunjhunwala, Assistant Vice President & Sector Head-Corporate Ratings at ICRA Limited, commented on the situation: “China, with its massive steel production capacity, needs markets for its steel. If domestic demand is insufficient, China is exporting its steel to foreign markets, often below production cost”.
India witnessed a substantial 38 percent increase in steel imports in FY24, reaching 8.319 million tonnes and making the country a net importer of steel for the fiscal year. This surge has intensified concerns among domestic steelmakers. Earlier in the year, Tata Steel CEO TV Narendran also raised alarms about the need for government intervention. “It would be a pity if the situation continues in the long run. We have to be watchful about imports. As long as it is unfair imports, the government needs to deal with it”, Narendran said.
The Indian steel industry is in ongoing discussions with the central government regarding potential trade measures to address the rising imports, particularly from China and Vietnam. Steelmakers have called for a review of free trade agreements (FTAs) and a curb on imports to protect the domestic industry from unfair competition.
Jindal noted that the global steel market remains weak, with heightened imports into India exacerbating the challenges faced by local steel producers. He attributed these issues to the elevated production and export levels of Chinese steel, which are placing significant pressure on global steel prices. “Global steel demand remains weak, leading to rising imports into India and affecting domestic steelmakers’ margins. This is mainly because of elevated Chinese production and exports, pressuring global steel markets. Several countries have raised barriers against steel imports, and the Indian steel industry is engaged with the government to ensure a level playing field”, Jindal explained.
The Indian steel industry is currently grappling with both weak local demand and the downturn in China's real estate sector, which is affecting steel consumption. Sumit Jhunjhunwala, Assistant Vice President & Sector Head-Corporate Ratings at ICRA Limited, commented on the situation: “China, with its massive steel production capacity, needs markets for its steel. If domestic demand is insufficient, China is exporting its steel to foreign markets, often below production cost”.
India witnessed a substantial 38 percent increase in steel imports in FY24, reaching 8.319 million tonnes and making the country a net importer of steel for the fiscal year. This surge has intensified concerns among domestic steelmakers. Earlier in the year, Tata Steel CEO TV Narendran also raised alarms about the need for government intervention. “It would be a pity if the situation continues in the long run. We have to be watchful about imports. As long as it is unfair imports, the government needs to deal with it”, Narendran said.
The Indian steel industry is in ongoing discussions with the central government regarding potential trade measures to address the rising imports, particularly from China and Vietnam. Steelmakers have called for a review of free trade agreements (FTAs) and a curb on imports to protect the domestic industry from unfair competition.
.jpg "Quadigy: Leading The Charge In B2B Marketing With Game-Changing Generative AI")
