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TV Narendran, MD and CEO, Tata Steel
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KAMAL NARANG
Steel imports, at present, “are not as big an issue as they were some three to four months back”, and if the positives sustain, steel makers can resume work on their investment plans, TV Narendran, MD and CEO, Tata Steel, told businessline. However, the sector is still not out of the woods, as apprehensions over dumping of the alloy continue.
“In the last few weeks, the situation has improved a bit, and if it sustains, then we can go back to the (investment) plans. When we spoke previously, a few months back, things (imports) were not great. That is why I said, unless there is some supportive action from the government, it would be difficult to justify the investment and the returns (on it),” he said.
Narendran cautioned that the threat of dumping is real, especially with global demand weakening and surplus capacity finding its way to Indian shores.
According to him, China is flooding international markets with excess supply of the alloy at prices “which do not make sense” — in some cases, even lower than their cost of production. As a result, exporters here have been hesitant to make offers in international markets, while mills have been focussing on “protecting their domestic market”.
Narendran was speaking on the sidelines of AIMA’s Leadership Conclave here.
Exports remain depressed as global trade sentiments continue to be weak, he said.
The sharp uptick in inflows (and decline in exports) — largely driven by price undercutting by players in China — has renewed calls for safeguard measures and cast a cloud over capital allocation plans in the sector. Companies have been reconsidering their investment decisions.
Import trends
“It (imports) was a concern… that’s why we had been pushing for safeguard duties. The government has initiated the process, and we are waiting for final clearance. Once the government announced that it was taking action on safeguard duty, we saw imports drop a bit. The devaluation of the rupee has also slowed down imports,” the Tata Steel MD said.
Steel imports in FY25 reached a 10-year high of 9.5 million tonnes (mt), with India becoming a net importer of the alloy. Exports were at a 10-year low of 5 mt. However, over the last few months, imports have witnessed a declining trend, indicating some relief 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 around 8 per cent to 0.56 mt, according to data from the Steel Ministry.
Narendran pointed out that the situation has eased slightly compared to late 2024.
“So just now, (steel) imports are an issue, but not as big as they were three to four months back. But we need to be watchful because of what’s happening across the world due to (Trump’s) tariffs. And we should not be flooded with unfairly priced imports,” Narendran added.
Price hikes
India’s steel-makers recently hiked prices of the alloy by ₹2,000-2,500 per tonne for April deliveries. The hikes, sources say, have sustained, but there is still cautious buying in the market.
Supporting the hike, Narendran said metal prices here are still around ₹20,000 per tonne lower than what they were two to three years ago. Over the last one month, prices have gone up, but they are still “nowhere near the long-term average”.
“(The recent price hikes) give steel companies some oxygen, but the problem persists. It is not that steel-making is such a profitable industry. If it were, you would have a lot more players coming in,” he said.
Published on April 16, 2025
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