China's Steel Surges, Europe and Others Tighten Import Quotas, India Shifts Focus to Domestic Market
Due to tightened steel import quotas in major markets such as Europe and the UK, Indian steel manufacturers are turning toward the domestic market to offset weak exports. However, they face increasing difficulty coping with competition from low-priced Chinese steel.
India is the world’s second-largest steel producer after China, with about two-thirds of its steel exports going to Europe.
With the EU and the UK tightening import quota regulations for steel, Indian steel exports are expected to decline by 40% this fiscal year.
The EU announced on June 30 measures aimed at restricting steel imports, and both the EU and the UK have imposed carbon taxes on steel and other high-carbon-emission imported products starting January this year under the Carbon Border Adjustment Mechanism (CBAM).
Currently, India maintains that 85% of its exports to the UK remain protected under the bilateral free trade agreement.
In the fiscal year March 2024, India exported 6.6 million tons of finished steel, but by May this year, exports dropped to just 500,000 tons—far below the average for the first half of the year. The main reasons include tightened import quotas and the implementation of tariffs and safeguard measures by the UK, EU, US, and several other markets.
Additionally, Chinese steel is being rerouted into the Indian market, where it sells for an average of $52 to $63 per ton lower than domestically produced Indian steel, making it extremely difficult for Indian steel mills to find domestic sales outlets.
The Indian government believes that Chinese steel creates unfair competition and has launched anti-dumping investigations into hot-rolled steel originating from China, Japan, and Russia.
Source: rfi
Original article: toutiao.com/article/1871332444817736/
Disclaimer: This article represents the personal views of the author