Indian steel firms worried over dumping of cheap Chinese steel
30 Jun 2018
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Indian companies are bracing for a possible flood of steel imports should the US and China follow through on their threats about a trade war, The Hindu reported.
The report, quoting Bhaskar Chatterjee, secretary general at Indian Steel Association, said, duties imposed by the US would trigger “trade diversion” from other steel makers, who would then dump their products in India.
As much as 80 million tons of steel — or 17 per cent of global exports, based on World Steel Association data — could be diverted to markets such as India, according to Seshagiri Rao, joint managing director, JSW Steel Ltd.
The comments highlight the uncertainties surrounding global trade ahead of 6 July 6 when President Donald Trump’s tariffs on $34 billion of Chinese goods are scheduled to kick in, a move that China has vowed to retaliate against.
India stands out as an attractive destination because it’s the world’s fastest-growing major economy, The Hindu report said. The country has also much riding on the health of its steel industry because it’s expected to overtake Japan as the world’s second-largest steel-producing nation as soon as this year.
Canada and the European Union are preparing countermeasures to prevent a flood of steel imports through a combination of quotas and tariffs.
.webp)
