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Indian steel makers worried over adverse fallout of US import curbs

Indian steel producers want the government to take protective measures as they are worried that there could be adverse fallouts of a global trade war triggered by the US import curbs on steel.

They are concerned that a wave of protectionist measures by the European Union and countries like China would cause world steel trade diversion and thereby result in increased imports into India.

Industry sources said loading of steel for exports has already been brought to a halt due to the uncertain atmosphere following the US action.

Essar steel managing director J Mehra said the government should act immediately to protect the domestic industry from the adverse fallouts of the US action.

Mehra said India should ban import of all steel products into the country and support any retaliatory action by the European Union.

Steel industry officials also fear that a global steel trade war might put a downward pressure on prices, hurting the already weak Indian steel industry.

The new US tariffs cover 10 steel-product categories and range from eight per cent to 30 per cent. They take effect on March 20 and are to be ratcheted down over three years.

Reports said US has spared imports from about 80 developing countries that account for less than 3 per cent of total imports for individual steel product lines. But Indian steel producers are unclear whether India has been included in the 80 developing countries.

The US had earlier imposed anti-dumping duties on hot-rolled and cold-rolled steel and cut-to-length plates from several countries including India.

The EU said President George W Bush's decision to impose tariffs of up to 30 per cent on imported steel could mean a loss of EU exports to the US. Market of four million tonnes a year and up to 16 million tonnes of trade diversion.

UNI

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