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Steelmakers Urge Government to Impose Temporary Tax on Cheap Imports

Industry experts suggest that the government needs to take a more proactive approach

Published

11 months ago

November 25, 2024

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India’s steelmakers, facing severe financial stress due to rising imports of cheap steel from countries like China, Japan, South Korea, and Vietnam, are calling on the government to impose a temporary tax to protect the domestic industry. The Indian Steel Association (ISA), which represents major steel producers such as JSW Steel, Tata Steel, and the Steel Authority of India (SAIL), is pushing for urgent action to curb what it sees as a flood of steel imports at predatory prices that threaten the survival of the domestic industry.

The ISA’s latest presentation to the Directorate General of Trade Remedies (DGTR), a branch of the federal trade ministry, highlights the impact of cheap imports on Indian steelmakers, particularly in key segments such as hot-rolled steel, coated steel, and steel plates. According to the ISA, these imports have displaced a significant portion of the domestic market share, leading to a loss of 17% in the hot-rolled segment, 20% in coated steel, and 19% in the plates segment. This surge in imports, particularly from countries with surplus steel production, has forced Indian mills to reduce their prices, putting additional strain on their financial health.

The ISA has also pointed out that countries like Vietnam, which was once an importer of Indian steel, have now become exporters of steel to India. This reversal in trade dynamics is contributing to the over-saturation of the Indian market with cheap steel, further exacerbating the financial difficulties faced by local producers. In response, the Indian government launched an anti-dumping investigation into steel imports from Vietnam, which is still ongoing. The ISA argues that such measures are necessary to protect the integrity of India’s domestic steel industry.

India, the world’s second-largest crude steel producer, has seen a sharp rise in steel imports, with finished steel imports reaching a seven-year high of 5.7 million metric tons between April and October of the current fiscal year. This increase in imports has led to a significant drop in the margins of Indian steelmakers, with some mills reporting losses of up to 91%. The financial stress caused by cheap imports is also affecting the ability of steelmakers to invest in new capacity expansions, raising concerns about the long-term growth prospects of the industry.

JSW Steel, India’s largest steelmaker by capacity, has already reported a third consecutive quarterly decline in profits, citing the impact of rising imports on domestic steel prices. Tata Steel and SAIL have also expressed concerns over the declining margins and reduced profitability, urging the government to step in and impose temporary safeguard duties to counter the influx of cheap foreign steel.

The ISA is lobbying for the government to implement a safeguard duty, which would temporarily increase tariffs on imported steel. This move is expected to protect domestic producers from the surge in low-priced imports and provide them with a level playing field to compete in the domestic market. The proposed safeguard duty would apply to imports from countries such as China, South Korea, Japan, and Vietnam.

The Indian government has already implemented various protective measures, including anti-dumping duties on certain steel products from China and South Korea. However, the ISA argues that these measures have not been sufficient to stem the tide of cheap imports, and a safeguard duty would offer additional protection to the struggling domestic steel industry.

Industry experts suggest that the government needs to take a more proactive approach to safeguard the interests of domestic steel producers. Without such measures, they warn that India’s steel sector could lose its competitive edge in the global market, further harming the economy.

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Nuvoco Vistas Reports Record Q2 EBITDA, Expands Capacity to 35 MTPA

Cement Major Nuvoco Posts Rs 3.71 bn EBITDA in Q2 FY26

Published

4 days ago

October 22, 2025

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Nuvoco Vistas Corp. Ltd., one of India’s leading building materials companies, has reported its highest-ever second-quarter consolidated EBITDA of Rs 3.71 billion for Q2 FY26, reflecting an 8% year-on-year revenue growth to Rs 24.58 billion. Cement sales volume stood at 4.3 MMT during the quarter, driven by robust demand and a rising share of premium products, which reached an all-time high of 44%.

The company continued its deleveraging journey, reducing like-to-like net debt by Rs 10.09 billion year-on-year to Rs 34.92 billion. Commenting on the performance, Jayakumar Krishnaswamy, Managing Director, said, “Despite macro headwinds, disciplined execution and focus on premiumisation helped us achieve record performance. We remain confident in our structural growth trajectory.”

Nuvoco’s capacity expansion plans remain on track, with refurbishment of the Vadraj Cement facility progressing towards operationalisation by Q3 FY27. In addition, the company’s 4 MTPA phased expansion in eastern India, expected between December 2025 and March 2027, will raise its total cement capacity to 35 MTPA by FY27.

Reinforcing its sustainability credentials, Nuvoco continues to lead the sector with one of the lowest carbon emission intensities at 453.8 kg CO? per tonne of cementitious material.

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Jindal Stainless to Invest $150 Mn in Odisha Metal Recovery Plant

New Jajpur facility to double metal recovery capacity and cut emissions

Published

1 week ago

October 17, 2025

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Jindal Stainless Limited has announced an investment of $150 million to build and operate a new wet milling plant in Jajpur, Odisha, aimed at doubling its capacity to recover metal from industrial waste. The project is being developed in partnership with Harsco Environmental under a 15-year agreement.

The facility will enable the recovery of valuable metals from slag and other waste materials, significantly improving resource efficiency and reducing environmental impact. The initiative aligns with Jindal Stainless’s sustainability roadmap, which focuses on circular economy practices and low-carbon operations.

In financial year 2025, the company reduced its carbon footprint by about 14 per cent through key decarbonisation initiatives, including commissioning India’s first green hydrogen plant for stainless steel production and setting up the country’s largest captive solar energy plant within a single industrial campus in Odisha.

Shares of Jindal Stainless rose 1.8 per cent to Rs 789.4 per share following the announcement, extending a 5 per cent gain over the past month.

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Vedanta gets CCI Approval for Rs 17,000 MnJaiprakash buyout

Acquisition marks Vedanta’s expansion into cement, real estate, and infra

Published

1 week ago

October 17, 2025

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Vedanta Limited has received approval from the Competition Commission of India (CCI) to acquire Jaiprakash Associates Limited (JAL) for approximately Rs 17,000 million under the Insolvency and Bankruptcy Code (IBC) process. The move marks Vedanta’s strategic expansion beyond its core mining and metals portfolio into cement, real estate, and infrastructure sectors.

Once the flagship of the Jaypee Group, JAL has faced severe financial distress with creditors’ claims exceeding Rs 59,000 million. Vedanta emerged as the preferred bidder in a competitive auction, outbidding the Adani Group with an overall offer of Rs 17,000 million, equivalent to Rs 12,505 million in net present value terms. The payment structure involves an upfront settlement of around Rs 3,800 million, followed by annual instalments of Rs 2,500–3,000 million over five years.

The National Asset Reconstruction Company Limited (NARCL), which acquired the group’s stressed loans from a State Bank of India-led consortium, now leads the creditor committee. Lenders are expected to take a haircut of around 71 per cent based on Vedanta’s offer. Despite approvals for other bidders, Vedanta’s proposal stood out as the most viable resolution plan, paving the way for the company’s diversification into new business verticals.