Easing steel imports pave way for investments, but dumping threat persists: TV Narendran

TV Narendran, MD and CEO, Tata Steel
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KAMAL NARANG

Steel imports, at current, “will not be as massive a problem as they had been some three to 4 months again”, and if the positives maintain, steel makers can resume work on their funding plans, TV Narendran, MD and CEO, Tata Steel, advised businessline. Nonetheless, the sector remains to be not out of the woods, as apprehensions over dumping of the alloy proceed.

“In the previous couple of weeks, the scenario has improved a bit, and if it sustains, then we are able to return to the (funding) plans. After we spoke beforehand, a number of months again, issues (imports) weren’t nice. That’s the reason I mentioned, until there may be some supportive motion from the federal government, it will be troublesome to justify the funding and the returns (on it),” he mentioned.

Narendran cautioned that the threat of dumping is actual, particularly with world demand weakening and surplus capability discovering its way to Indian shores.

In accordance with him, China is flooding worldwide markets with extra provide of the alloy at costs “which don’t make sense” — in some circumstances, even decrease than their price of manufacturing. Consequently, exporters right here have been hesitant to make affords in worldwide markets, whereas mills have been focussing on “defending their home market”.

Narendran was talking on the sidelines of AIMA’s Management Conclave right here.

Exports stay depressed as world commerce sentiments proceed to be weak, he mentioned.

The sharp uptick in inflows (and decline in exports) — largely pushed by value undercutting by gamers in China — has renewed calls for safeguard measures and forged a cloud over capital allocation plans within the sector. Firms have been reconsidering their funding choices.

Import developments

“It (imports) was a priority… that’s why we had been pushing for safeguard duties. The federal government has initiated the method, and we’re ready for last clearance. As soon as the federal government introduced that it was taking motion on safeguard obligation, we noticed imports drop a bit. The devaluation of the rupee has additionally slowed down imports,” the Tata Steel MD mentioned.

Steel imports in FY25 reached a 10-year excessive of 9.5 million tonnes (mt), with India changing into a web importer of the alloy. Exports had been at a 10-year low of 5 mt. Nonetheless, over the previous couple of months, imports have witnessed a declining development, indicating some reduction for alloy-makers.

In January, imports stood at 0.9 mt — flattening out over December — and in February, dipped 36 per cent (over January) to 0.6 mt. In March, there was a sequential dip of round 8 per cent to 0.56 mt, in accordance with information from the Steel Ministry.

Narendran identified that the scenario has eased barely in comparison with late 2024.

“So simply now, (steel) imports are a problem, but not as massive as they had been three to 4 months again. But we must be watchful due to what’s taking place the world over because of (Trump’s) tariffs. And we shouldn’t be flooded with unfairly priced imports,” Narendran added.

Value hikes

India’s steel-makers lately hiked costs of the alloy by ₹2,000-2,500 per tonne for April deliveries. The hikes, sources say, have sustained, but there may be nonetheless cautious shopping for available in the market.

Supporting the hike, Narendran mentioned metallic costs listed below are nonetheless round ₹20,000 per tonne decrease than what they had been two to a few years in the past. Over the past one month, costs have gone up, but they’re nonetheless “nowhere close to the long-term common”.

“(The latest value hikes) give steel corporations some oxygen, but the issue persists. It isn’t that steel-making is such a worthwhile trade. If it had been, you’d have much more gamers coming in,” he mentioned.

Printed on April 16, 2025