The government hasn’t yet decided on whether to fix a minimum import price (MIP) for steel, as it is in the process of assessing arguments of various stakeholders, industry sources said.
While steel producers seek such a curb, especially to guard against “dumping” from countries such as China, consuming industries want the continuation of cheaper imports.
Despite the increase in steel imports, 85% of demand is still being met domestically, sources said.
Most of the steel producers are also running at 80% of their capacity.
The government has already imposed a 20% safeguard duty on steel imports until March 2016, and has raised the peak customs duty to 15% this financial year from 10%.
However, the steel ministry is reported to have sought even a further hike in the customs duty to 25%, arguing that the measures already taken haven’t succeeded in containing massive imports. The country’s steel imports have surged by 29% during the April-December period, primarily due to “predatory pricing” by countries like China.
Source: India Steel Market Watch