India’s recent decision to impose a 12% temporary tariff on certain steel imports is expected to help reduce the influx of imported steel, according to Jayant Acharya, the CEO of JSW Steel. This measure, announced earlier this week, will remain in place for 200 days and aims to support the local steel industry as imports have surged to a nine-year high, largely driven by increased shipments from countries like China, South Korea, and Japan.
The rise in finished steel product imports has put pressure on Indian steel mills, forcing some to cut back operations and consider layoffs in response to the competitive pricing of imported steel. Acharya emphasized that the safeguard tariff aims to create a more equitable environment for domestic producers facing low-cost imports.
He also mentioned the need to assess whether the 12% duty will be sufficient or if further adjustments are necessary. Additionally, Acharya pointed out the challenges posed by Europe’s intention to tighten steel import quotas, which could limit JSW Steel’s market presence in the region.
The European Commission’s move is intended to protect its struggling steel industry from an influx of foreign imports. On another front, JSW Steel is actively looking into acquiring coal assets in India, assessing potential purchases based on strategic and commercial considerations.
Currently, the company relies on coal sourced from Australia, the United States, and Mozambique, which is a crucial raw material in steel production. This exploration of domestic resources reflects the company’s commitment to enhancing its operational capacity and securing essential supplies for its manufacturing processes.