Stainless steel companies seek govt action on China dumping & raw materials

New Delhi: The domestic stainless steel industry is seeking government intervention to safeguard its interests as it prepares to scale up output by the end of the decade.

According to a presentation by the Indian Stainless Steel Developers Association (ISSDA), improving raw material availability and protecting the sector from Chinese dumping are key priorities.

"We are at an inflection point in Indian stainless steel growth story," Karan Pahuja, former president of ISSDA, told ET, adding that domestic consumption is growing 7-8% annually and exceeded 5 million tonnes (mt) last year. To keep pace with demand, producers are expanding capacity from about 7 mt to 11 mt.


Subhrakant Panda, managing director at Indian Metals & Ferro Alloys Ltd (IMFA), said India's per capita consumption of about 3 kg "will easily double" over the next decade. IMFA is doubling its ferrochrome output to nearly 500,000 tonnes by FY28 and shifting its sales mix from 90% exports to a 60:40 split to "cater substantially to the domestic market where space is opened up".

India currently meets only 15-18% of its nickel requirement domestically.

To secure the supply chain, ISSDA is urging the government to designate chromium as a Critical Mineral, allowing the centre to usher speedier operationalisation of auctioned mines.

Pahuja also said "customs duty on imported inputs like scrap and ferro alloys should be made zero permanently" to keep costs competitive.

The sector is also facing pressure globally from rising imports and trade barriers in Western markets. According to ISSDA, China has excess melting capacity of over 8 mt, much of which is being diverted to India. There are also instances of shipments being rerouted through countries like Vietnam to bypass existing safeguards.