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Prolonged Chinese imports may hit Indian steel market's financial investments, Tata Steel CEO says

India's steel imports from China were unjustly priced and extended deliveries might hurt financial investment strategies of the domestic steel market, the chief executive of Tata Steel told Reuters on Thursday.

It's not that Chinese steel is more competitive ... they just have the ability to keep selling steel even at costs at which they lose cash, which is certainly unjust competition, said T. V. Narendran, president and handling director at Tata Steel.

If this continues for very long, it will have an impact on the financial investment plans that the steel industry is making, he stated.

Rapid economic growth and increased facilities costs have turned India into a global hotspot for steel need growth, even as demand tapers in Europe and the U.S.

. The country's steel need touched a seven-year high in the April to August duration.

India, the world's second-biggest crude steel producer, remained a net ended up steel importer throughout April-August, with imports from China hitting a seven-year high.

Some Chinese steel was likewise pertaining to India from Southeast Asia, Narendran said.

The Indian government has initiated an anti-dumping probe on certain steel items imported from Vietnam.

The market is seeking higher imports tariffs or secure measures to tackle increasing imports, Narendran said.

Provided the Chinese supplies, prices of flat items were likely to stay rangebound, he said.

Steel need in India is anticipated to grow at 8% -9% during 2024/25, Narendran stated, driven by building, automotives, trains and oil and gas.

Any tariff increases from Donald Trump, who has actually been chosen as the next U.S. president, were unlikely to have much impact on India since barely any steel is exported to the U.S., Narendran stated.

Individually, Tata Steel was not aiming to acquire any coking coal possessions overseas, Narendran stated, including that the company's. Indian operations mostly satisfied its requirements from Australia.

(source: Reuters)