Jindal, speaking at the annual general meeting, said that as a result of weakened global market for steel and higher imports of the metal into India, the margins for local steelmakers have been affected despite a growth in domestic steel demand.
“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,” he said.
Jindal added that geopolitical risks continue to remain high, particularly regarding their impact on commodity and energy prices. However, global growth is expected to remain stable in 2024 and 2025, with inflation gradually decreasing.
Chinese dumping affecting India's mettle
India's domestic steel players are enduring a difficult time currently amid weak local demand and downturn in China's real estate sector."China with its humungous steel capacity needs a market for the metal and if not domestic market, China is dumping it in foreign markets, perhaps even below the production cost," Sumit Jhunjhunwala, Assistant Vice President & Sector Head-Corporate Ratings, ICRA Limited, told ET in an interview recently.
India's domestic steel players are enduring a difficult time currently amid weak local demand and downturn in China's real estate sector.
"China with its humungous steel capacity needs a market for the metal and if not domestic market, China is dumping it in foreign markets, perhaps even below the production cost," Sumit Jhunjhunwala, Assistant Vice President & Sector Head-Corporate Ratings, ICRA Limited, told ET in an interview recently.
The Indian steel industry has been in talks with the central government for trade measures to combat rising imports particularly from China and Vietnam, Jindal had said earlier, reported ET.
India in FY24 saw a 38% surge in steel imports to 8.319 million tonnes, becoming a net importer of the commodity during the last financial year.
Ahead of the Union Budget 2024, a similar issue was raised by another prominent steel player Tata Steel.
"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," Tata Steel CEO TV Narendran told news agency PTI in an interview earlier this year.
Steelmakers have been raising concerns on increasing imports from certain countries, including China and seeking the government's intervention on the issue. Domestic players have also been demanding a curb on imports and review of free trade agreements (FTAs) with several countries.
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