Steel makers seek protection from cheap imports

NEW DELHI: Under pressure of surplus domestic capacity, stainless steel makers in India are seeking economic protection from cheap imports.

Steelmakers such as Jindal Stainless and Steel Authority of India (Sail) claim that there has been a 30% rise in cheaper imports in the recent months, particularly from China. Imports now account for 34% of the domestic stainless steel market and companies are demanding to raise import duty from current 5%.

According to N C Mathur, president of Indian Stainless Steel Development Association, of the 6.32 lakh tonne sold between the period from April to November 2012, about 2.16 lakh tonne came from imports.

"Of India's total steel production, stainless steel accounts for 4%, well above the global average of 2% (of stainless steel against total steel produced). We've worked hard to create demand, the government must consider doing something beyond a safeguard duty," Mathur said.