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Source: Indian steel imports will be affected by EU import restrictions but demand is strong locally

Source: Indian steel imports will be affected by EU import restrictions but demand is strong locally

India's government is confident that the strong domestic steel demand will offset the European Union plans to tighten import quotas starting in April. A source with first-hand knowledge of the issue confirmed this.

The European Commission announced on Tuesday that it will tighten steel import restrictions from next month, in an effort to protect the European steel industry from soaring imports.

The EU will lower import quotas (also known as safeguards), limiting the amount that can be imported tariff-free into the 27-nation bloc.

The source declined to identify herself as India had not publicly responded to the EU move.

The Indian federal Ministry of Steel has not responded to an email seeking comment.

India's steel exports were a major concern for the EU, since Europe is one of the most popular destinations for Indian metal.

India exported 2,03 million metric tons (46%) of its total shipments to the European Union in the first 11 month of the current financial year.

Indian exports, however, are usually small in comparison to the local consumption within the second-largest crude steel producing nation.

India's steel consumption in 2023/24 was 136,000,000 metric tons, compared to 7.5 million tons exported.

Sources also stated that the U.S. steel tariffs would not have any impact on Indian exports, since they were "insignificant."

Sources said that because Chinese exports were so small to the U.S., diverted steel flows towards India was not as concerning. However, China remained "the biggest concern".

India imported record amounts of steel from China and South Korea in the first ten months of its financial year, which began in April. India also remained net importer.

India proposed a temporary tax on certain steel products of 12% for 200 days. This is known as the safeguard duty in India. The move was made to reduce imports. (Reporting and editing by Saad sayeed; Neha Arora)

(source: Reuters)