Mumbai, November 14: India’s leading steel manufacturer Tata Steel has urged the government to continue protective import tariffs on steel products following their recent expiration, citing concerns over market disruption from foreign imports, particularly from China.
In a recent statement, Tata Steel CEO T.V. Narendran emphasized that even limited import volumes can significantly destabilize domestic market conditions.
Import volumes are limited in India but even small volumes disturb the market,” Narendran explained.
The company’s concerns stem from China’s aggressive steel export strategy globally. Narendran pointed out that Indian steel producers face limited export opportunities as most international markets are saturated with Chinese steel products.
The timing is critical as temporary import tariffs that India imposed in April to control Chinese steel imports expired last week, leaving domestic manufacturers vulnerable to renewed import pressure.
Beyond domestic challenges, Tata Steel is grappling with international trade barriers. The company’s European and UK operations have been affected by U.S. tariffs, impacting approximately 800,000 metric tons of annual exports to America. To compensate, the steel giant is exploring new markets across Latin America, parts of Europe, Africa, and the Middle East.
Tata Steel’s CFO Koushik Chatterjee also raised alarm bells about the UK market, describing it as “literally a dumping ground for imports” and calling for British authorities to implement import controls.
On the operational front, the company is working to finalize costs for decarbonizing its Netherlands facility, while job reductions announced earlier this year remain under negotiation with labor unions.
Looking ahead to the third quarter, Tata Steel anticipates a decline in steel prices by 1,500 rupees per ton compared to the previous quarter in India.
The call for tariff extension reflects broader industry concerns about maintaining competitive balance in India’s steel sector, which ranks as the world’s second-largest crude steel producer.
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