India Probes Cheaper Steel Imports Amid Rising Concerns

India's federal Ministry of Steel has requested the trade ministry to investigate cheaper steel imports from China and Vietnam. The nation, a major crude steel producer, has seen a spike in imports, prompting discussions on trade measures. India is also working to diversify its coking coal imports.

India's federal Ministry of Steel has requested the trade ministry to launch an investigation into cheaper steel imports from China and Vietnam, according to a government source. This action comes as New Delhi grapples with rising import levels.

As the world's second-largest crude steel producer, India turned net steel importer in the recent fiscal year, and this trend appeared to continue with finished steel imports hitting a five-year high in April and May. The trade ministry is being urged to investigate and provide recommendations to the finance ministry.

The steel and trade ministries did not immediately respond to requests for comments. However, JSW Steel has confirmed discussions with the federal government about potential trade measures to tackle the influx of imports from China and Vietnam.

The steel ministry also urged EU officials to avoid imposing higher taxes on its carbon-producing industries, following the EU's recent approval of tariffs on high-carbon goods. Additionally, India aims to diversify its coking coal imports from countries like Russia, Canada, and the U.S. to reduce reliance on Australia.

Indian steel firms consume around 70 million metric tons of coking coal annually, with imports accounting for 85% of needs. Some firms have also trialed coking coal imports from Mongolia, with shipments expected soon following extensive negotiations.

(With inputs from agencies.)