The Indian steel industry may already be in deep waters with imports rising above the normal levels—a situation that’s expected to worsen as countries retaliate to the U.S. steel tariffs, according to JSW Steel Ltd.’s Seshagiri Rao.
Indian steel imports have risen to 8.4 million tonnes in the financial year ended March 2018, the managing director and group chief financial officer of the country’s largest steelmaker, told BloombergQuint in an interview. These import levels are higher than the normal range of 6.5-7.5 MT, he added. Steel imports have risen 15 percent while exports have fallen 29 percent.
“India being a country which has robust steel demand, we should be very, very watchful of the rising imports and falling exports.
Seshagiri Rao, MD & Group CFO, JSW Steel
Currently, trade data suggests that India is likely to turn into a net importer of steel products for the first time in three years.
U.S. President Donald Trump announced $50-billion tariff on Chinese goods, including steel, out of which $34 billion worth of tariffs are set to hit on July 6. The country has also imposed steel and aluminium tariffs on trade giants such as Canada and Europe.
“If retaliatory actions take place by all these countries there is approximately 80 million tonnes of steel going into these countries that will need to find a new market and that is a reason for concern for all of us, particularly India,” Rao said.
Source: Bloomberg Quint
Link to Original Article