Indian steel exports do not seem to be subject to additional tariffs under consideration by Trump administration at this moment; but the Steel Ministry is actively discussing ways – including through diplomatic channels – “to counter potential challenges posed by the US trade measures”, HD Kumaraswamy, Union Minister for Steel and Heavy Industries told businessline in an exclusive interview.
Additionally, India is prepared to introduce tariff and non-tariff barriers, or import restrictions, if necessary, to protect domestic producers, he said.
According to Kumaraswamy, Indian officials are “actively engaging” with their US counterparts under the Mutually Agreed Solution (MAS) framework to secure product-specific exclusions for Indian steel offerings, he said.
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Discussions have been initiated with other line ministries, like the Ministry of Commerce and Industry, for negotiations, with the Prime Minister, Narendra Modi, himself overseeing such talks. Steps are being taken to “ensure fair competition and protect domestic interests.”
“The Ministry of Steel is working closely with the Ministry of Commerce & Industry, the nodal authority for trade policy, negotiations, and international disputes, to safeguard India’s steel sector. Ensuring fair competition and protecting domestic interests central,” Kumaraswamy said.
Indirect impact
According to Kumaraswamy, most of India’s steel offerings to the US were already covered under US Section 232 measures, so there could be less of a direct impact on Indian mills.
India’s metal export to the US was in the 95,000–100,000 tonne range last year.
Domestic industry – which faces an indirect impact of excess stock of the metal (steel) coming in from other Asian markets – will be “protected” too. Safeguard measures are under consideration, too.
“….the removal of exemptions for other nations could have an indirect impact,” he said, pointing out that domestic steel makers will face “increased competition” from countries like Japan and South Korea, which previously benefited from (US) exemptions. This may lead to a surge in their steel exports to global markets, affecting India’s trade position.
Additionally, India is expanding its presence in alternative export markets, particularly beyond Europe, the Middle East, and Southeast Asia.
“Through a combination of proactive trade policies, strategic interventions, and diplomatic outreach, the government remains committed to fostering a competitive, resilient steel industry, essential for achieving Viksit Bharat 2047,” Kumaraswamy said.
Domestic consumption
So far, India has been amongst the few economies globally that have seen double-digit steel consumption growth, up 11 per cent y-o-y to 125 mt for the 10-month period (April – January). For the period under review, finished steel production was around 120 mt, up 4 per cent y-o-y.
Metal prices of the bench-mark hot rolled coils improved by 4 per cent sequentially to ₹48,500 per tonne, as against ₹46,500 per tonne in January. However, steel prices in India have seen a significant 10 per cent y-o-y from ₹54,000 per tonne levels last February.