Indian Steel Importers Resist on Possible Minimum Import Prices

Resistance seen from Indian steel importers on speculation that the government may impose Minimum Import Price (MIP) in order to control rising imports into the country.

Market participants mentioned that imported offers are quite stable. But, buyers are unwilling to place orders till government clears its stand on import restrictions.

Current flat steel offers

Offers in USD/MT
Source: SteelMint Research

Minimum import price on steel products this week 

Today, Ministries of Commerce and Steel have decided to fix a minimum import price for about 35-40 steel products including Pig iron, semi finish products and cold-rolled coils. This list and the price is expected to be finalized this week.

Alongside, the government has recently imposed anti-dumping duty on cold-rolled flat products of stainless steel. The duty has been levied in the range of 5-57% on major countries such as China, US, South Africa, Thailand and Taiwan.

The highest duty of 57.39% has been imposed on steel from China. Meanwhile, anti-dumping duty of 9.47% has been levied on cold-rolled flat products of stainless steel from the US, 29.41-52.56% from EU and 5.39% from Thailand.

A senior government official stated, “Many steelmakers have taken huge loans for capacity expansion and are currently under severe stress amid cheaper imports especially from China.”

In September, India had imposed 20% safeguard duty on HRC import; applicable for 200 days. Moreover in August, the government had hiked import duty on base metals including iron and steel by 2.5% to help domestic players.