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MSMEs Oppose Proposed Steel Import Duty Hike Amid Price Volatility

FOCIA urges government to reconsider steel import duty hike

Published

1 year ago

September 23, 2024

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Micro, small, and medium enterprises (MSMEs) in Coimbatore are raising concerns over the Union steel ministry’s proposal to increase the import duty on steel products, fearing it could harm their businesses. The Federation of Coimbatore Industrial Associations (FOCIA) has sent an urgent letter to the Union steel and heavy industries minister, urging a reconsideration of the move.

FOCIA highlighted that MSMEs, which purchase steel for manufacturing components supplied to large industries, have struggled with volatile steel prices since the pandemic. After recent price reductions, these smaller industries are finally recovering, securing export orders. However, the proposed import duty hike threatens to disrupt this fragile stability, making it difficult for MSMEs to fulfill existing orders, particularly those from public sector units (PSUs) like the railways.

FOCIA also called for a ‘maximum selling price’ policy for metals like steel, aluminum, and copper to protect MSMEs from future price volatility. Additionally, they renewed their demand for a price monitoring committee that includes MSME representation to ensure fair pricing.

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India Tackles Rising Steel Imports

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Steel Industry Seeks Stronger Action to Curb Rising Imports

Producers urge policy steps as imports surge, hurting domestic utilisation

Published

4 hours ago

November 4, 2025

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India’s steel producers have called for stronger government intervention to curb rising steel imports, particularly from China, which produced 746.3 million tonnes (MT) of crude steel between January and September 2025 — over six times India’s output.

According to the World Steel Association, India produced 122.4 MT during the same period. In September alone, China’s production of 73.5 MT was more than fivefold India’s 13.6 MT.

The stainless steel sector continues to face pressure from imports, operating at just 60 per cent of its 7.5 MT installed capacity. Industry representatives warned that unless measures are strengthened, domestic utilisation and investment plans could suffer.

Over the past few years, the Ministry of Steel has introduced over 100 Quality Control Orders (QCOs) to prevent non-BIS-compliant steel products from entering the Indian market. The June 2025 QCO even imposed restrictions on importing certain steel inputs.

“The validity of QCOs can be extended to prevent sub-standard and cheap material from entering the country,” said an industry executive, calling for further protective measures aligned with the government’s Atmanirbhar Bharat vision.

In March 2025, the Directorate General of Trade Remedies (DGTR) recommended a 12 per cent provisional safeguard duty for 200 days on select steel products to counter a surge in imports. However, the stainless steel industry later sought a broader probe, as its concerns were not fully covered by the duty.

A high-level committee of NITI Aayog is expected to meet steel industry leaders next week to discuss the issue, sources indicated.

Data from BigMint show that domestic steel prices fell to a five-year low in October due to higher import inflows. The Reserve Bank of India (RBI) has also flagged the rise in imports — largely driven by lower prices — and called for policy support to strengthen domestic competitiveness.

India imported 0.79 MT of finished steel in September 2025, up from 0.69 MT in August, marking the sixth consecutive month as a net steel importer. Imports from Korea, Russia, and Indonesia rose, while those from China, Japan, Vietnam, Thailand, and Taiwan declined year-on-year.

During the first half of FY26, inbound shipments exceeded exports by 0.47 MT despite a 40 per cent rise in export volumes to 4.43 MT, underscoring the growing import imbalance faced by the domestic steel industry.

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India, Sweden Discuss Green Steel Collaboration

Talks held to explore R&D and technology partnerships in green steel.

Published

1 day ago

November 3, 2025

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Union Minister of State for Steel, Bhupathiraju Srinivas Varma, held a productive meeting with Ms Sara Modig, State Secretary to the Minister for Energy, Business and Industry, Sweden, at the Ministry of Steel in New Delhi. Ms Modig was accompanied by His Excellency Mr Jan Thesleff, Ambassador of Sweden to India, and other senior Swedish officials.

During the discussions, Minister Srinivas Varma highlighted the rapid growth of India’s steel sector, driven by the visionary leadership of Prime Minister Shri Narendra Modi. India aims to achieve 300 million tonnes of crude steel production capacity by 2030, in line with its commitment to infrastructure-led growth and industrial expansion.

He noted that domestic steel demand in India is rising by around 11 to 13 per cent annually, fuelled by major national infrastructure initiatives, even as global demand shows signs of slowing down.

The two sides discussed potential avenues for collaboration in Research and Development (R&D), particularly in Green Steel Production and other advanced technologies designed to reduce carbon emissions and promote sustainable manufacturing.

Minister Varma also reaffirmed India’s invitation to Sweden to participate in Bharat Steel 2026, an international conference-cum-exhibition dedicated to the steel industry. The event is scheduled to take place on 16–17 April 2026 at Bharat Mandapam, New Delhi, and will serve as a global platform for dialogue, partnerships, and technology exchange in sustainable steelmaking.

The meeting underscored India’s commitment to fostering global cooperation in decarbonising steel production, aligning with both countries’ shared goals of sustainability, innovation, and industrial growth.

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L&T wins Hindalco, Tata Steel projects in Odisha, Jamshedpur

L&T bags major aluminium and steel sector orders

Published

1 week ago

October 28, 2025

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Infrastructure major Larsen & Toubro (L&T) announced on Friday that it has secured significant orders from Hindalco Industries and Tata Steel, strengthening its presence in the metals and minerals sector.

The company’s minerals and metals business vertical won an order from Hindalco to set up a 180 KTPA aluminium smelter and gas treatment centre for a greenfield project in Odisha, as well as a separate order from Tata Steel to construct a coke oven battery at Jamshedpur.

These are among several recent orders bagged by the vertical in India, L&T said in a filing to the Bombay Stock Exchange (BSE).

The scope of the projects includes engineering, manufacturing, supply, construction, and plant installation.

T Kumaresan, Senior Vice President and Head of Minerals & Metals at L&T, said,

“These order wins across the aluminium and steel sectors are a testament to L&T’s engineering excellence, execution capability, and long-standing customer relationships. They further strengthen our role in shaping the nation’s industrial infrastructure, while deepening our engagement with the steel sector through world-class execution and technological excellence.”

The contracts underscore L&T’s strategic focus on expanding its footprint in India’s metals and industrial infrastructure segment, which continues to see strong growth driven by rising domestic demand and capacity expansion across core sectors.