With capacity utilisation falling to just around 50-55 per cent, domestic stainless steel makers are a worried lot over rising imports from China, Japan and Korea, an industry body said today.
Against around five million tonnes per annum installed capacity, India produced between 2.4-2.8 mtpa stainless steel almost half of which is used in the making of utensils. India is the world's third largest producer also.
"With growing imports from China, Japan and Korea, Indian stainless steel makers are in a fix. We will continue to bleed until basic customs duty on all the key raw materials in India are reduced to zero to ensure a level playing field," said N C Mathur, President, Indian Stainless Steel Development Association (ISSDA).
ISSDA, which is set to celebrate its silver jubilee later this week, has already communicated its "issues" to the Steel Ministry hoping an amicable solution to the problem.
Mathur also said that the basic customs duty on finished products should also be aligned with the rate applicable in China. Free trade agreements with Japan and Korea have also accorded benefits to these two Asian peers, he added.
Imports of stainless steel from China are likely to go up to 2.5 lakh tonnes this fiscal from 1.13 lakh tonnes in the last fiscal.
Out of total 4 lakh tonnes expected imports in the current fiscal, Japan is likely to contribute 60,000 tonnes and Korea 40,000 tonnes, Mathur said.
Article Source: http://www.business-standard.com/article/pti-stories/stainless-steel-makers-in-a-fix-over-rising-imports-issda-114110300839_1.html
Publication Date: 03 Nov 2014