Page 15 - CV Aug-Sep 2023 Issue

INDIAN TRADERS SCOOP UP CHEAPER CHINESE STEEL, SAYS

INDUSTRY EXECUTIVES

ndian traders have been scooping up in the eastern state of Odisha and the
Chinese steel at a deep discount, western state of Gujarat find it cheaper to In April-May, Indian imports of Chinese
Iindustry officials and analysts said, import steel from China than spend on steel products such as plates and pipes
spooking Indian producers ahead of a local freight, a senior executive at a used as construction material reached a
seasonal pick up in domestic demand. major Indian steelmaker said on three-year high.
condition of anonymity.
Lured by discounts of $30 to $50 a tonne During April-May, around 35% of steel
on hot-rolled and cold-rolled products, Cheaper steel purchases from China imports from China were cold-rolled steel
Indian buyers are signing a flurry of could further eat into the market share of products, followed by pipes About 68% of
import deals, they added. Domestic Indian suppliers, already hit by imports of Chinese cold-rolled steel cargoes landed
industrial activity is set to pick up over the Chinese electrical steel used in power at Mundra Port, owned and operated by
next two months after the monsoon rains infrastructure and electric motors, Gujarat Adani Port.
recede. Indian traders are buying the industry officials and analysts said.
grades used in automobiles and Senior officials at five big Indian mills, Stainless steel imports from China
construction, main drivers of domestic some of whom did not wish to be named reached a three-year high at 107,000
steel demand, the officials and analysts as they were not authorised to talk to metric tons in the same period. However,
said "The Chinese are offering discounts media, said Chinese imports were a India has decided not to impose a
because other markets are not doing well threat. India, the world's second-biggest countervailing duty on select steel
and we are seeing good growth in Indian crude steel producer, imported 228,000 imports from China to protect end-users,
automobile and construction sectors," metric tons of steel from China during the a government source told Reuters last
said Snehdeep Bohra, a director at Fitch first two months of the fiscal year that week.
Ratings in India. Traders near port cities began in April - the highest in six years.

CONSTRUCTION VISION 13 AUGUST - SEPTEMBER 2023