A worker monitors an electric furnace inside a steel factory on the outskirts of Jammu on February 12, 2018. Photograph: Mukesh Gupta/Reuters. Obtaining licensing rights
NEW DELHI/BEIJING (Reuters) – Steel producers in India expect domestic manufacturing to strengthen and prices to fall following New Delhi’s decision to impose anti-dumping duties on steel wheels produced in China, according to four industry executives.
The Indian government, late Monday, imposed anti-dumping duty on steel wheels used in tires coming from China, in a bid to crack down on predatory pricing.
Relatively smaller market size With only 0.75 million tons of wheels produced annually, according to an industry executive, the entry of steel producers into the sector is expected to be profitable, and more competition will lead to lower domestic prices.
“With two to three months, wheel manufacturers will turn to local producers to buy steel and prices will come down,” said a senior executive of a large steel mill, adding that the cost of a steel wheel ranges from 30 to 35 percent. Of alloy.
“Chrome plating on a wheel is expensive but lower steel prices should be able to bring down overall prices,” the executive said.
One Zhejiang steel trader said the overall impact on China’s export market would be “relatively limited” as shipments to India represent a “very small portion of total exports.”
The Indian steel industry has raised concerns with the government over possible dumping of steel by Chinese vendors.
During the April-July period, China was the second largest exporter of steel to India, after South Korea, selling 0.6 million metric tons, an increase of 62% over the same period of the previous year.
In total, India imported 2 million metric tons of finished steel during this period, the highest level since 2020 and an increase of 23% over the previous year.
China, the world’s largest steel producer, has exported cold-rolled coils or sheets to India.
(Reporting by Neha Arora in New Delhi and Amy Love in Beijing; Preparing by Mohammed for the Arabic Bulletin) Editing by David Evans
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