Surplus 'Chinese Steel' Floods In, Threatening to Ruin Construction Industry... India Faces Urgent Crisis

US Begins Full Implementation of High Tariff Measures on China
Indian Steel Industry Expresses Concern Over Influx of Chinese Products
Indian Industry Demands Countermeasures from Domestic Government

As the United States imposed high tariffs on Chinese steel products, Indian steel companies have expressed concerns about a potential influx of low-priced Chinese products into their country and have urgently demanded countermeasures from the government.

JSW Steel headquarters, a steel company located in Mumbai, India. Photo by Yonhap News

According to major foreign media on the 28th (local time), the Indian Steel Association (ISA) made this statement in relation to the U.S. government's decision earlier this month to impose a 25% tariff on Chinese steel and aluminum products, which was officially implemented the day before. ISA includes major Indian steel companies such as JSW Steel and Tata Steel.

Alok Sahai, Secretary General of ISA, said in an interview with major foreign media, "Due to the measures taken by the U.S. to address unfair trade practices against Chinese products, Chinese steel will flow into India, which will have an adverse impact on the Indian steel industry."

China is facing high tariff barriers in the U.S. market and a decrease in domestic demand, leading to an oversupply problem of steel products. Accordingly, ISA is concerned that the Indian market, which has a relatively high economic growth rate and active infrastructure construction projects, will become a primary target.

Secretary General Sahai stated, "If Chinese steel is imported into India at low prices, the Indian steel industry will suffer a significant blow," and requested the government to double the import tariff rate on steel products to regulate low-priced imports.

Major foreign media also reported that steel companies in Japan and Europe are facing similar situations to India.

India is already one of the major importers of cheap steel products, having shifted to a net importer of alloys in the previous fiscal year, with alloy imports continuing to increase in the current fiscal year. In particular, Chinese processed steel products imported into India over the five months from April this year reportedly reached the highest level in seven years.