| Date: |
06-08-2010 |
| Subject: |
India's Steel Imports Rise |
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NEW DELHI -- India's finished steel imports in April-July rose 66% from a year earlier to 3.66 million metric tons due to robust demand from automakers and construction sector and lower overseas prices, forcing local mills to seek import curbs.
Most of the imports during the period were of hot-rolled coils--which are primary products for making cold-rolled sheets and pipes--from China and east European countries, said a senior steel ministry official, asking not to be named.
Banking on the growing demand for steel, producers such as ArcelorMittal, POSCO and Tata Steel have lined up mega expansion plans in India. The new projects have failed to take off due to a delay in land acquisition and allocation of mineral linkages.
"I am not surprised by the high steel imports that is taking place. India is likely to remain a net importer for a long time as it hasn't invested adequately in greenfield projects," Tata Steel Managing Director H.M Nerurkar said.
India is the world's fifth-largest steel producer with an installed production capacity of 72 million tons. It aims to raise capacity to 124 million tons by December 31, 2012.
In April-July, the country's steel consumption jumped by 10.7% to 20 million tons, according to provisional data from the steel ministry.
India's finished steel output in July increased marginally from a year earlier to 4.95 million metric tons, while demand rose 6.7% to 5.07 million tons leading to a 31.7% rise in imports at 905,000 tons.
Local steel mills have been lobbying with the government to curb cheap steel imports, as it's affecting both the sales and price of domestic products.
Landed price of imported hot-rolled coils are around 10% cheaper than domestically-produced coils, which sell around 33,000 rupees-34,000 rupees ($739)/ton, according to a senior industry executive, who asked not to be named.
India currently levies an import tax of 5% on all categories of steel products, which the industry wants to be raised. Local mills want the government also to put administrative restrictions on these imports.
Major steel producers are likely to meet senior steel ministry officials Friday to seek curbs on cheap steel imports.
Source : online.wsj.com
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