Indian Steel Makers Face Turbulent Year Ahead Owing to Cheap Chinese Steel

Tata Steel CEO and Managing Director T.V. Narendran emphasized the contrasting trends in the global and Indian steel sectors during a New Year event, highlighting the challenges faced globally and the growth opportunities in India. He noted that 2023 and 2024 were challenging years for the global steel industry due to compressed margins and difficulties in maintaining profitability, largely driven by aggressive pricing from China and the lingering impacts of COVID-related curbs.

Last month, India initiated a probe into an alleged increase in imports of certain steel flat products into the country following a complaint from the Indian Steel Association. The imports of Non-Alloy and Alloy Steel Flat Products used in various industries, including fabrication, pipe making, construction, capital goods, auto, tractors, bicycles, and electrical panels, will be investigated.

He highlighted the significant potential of the Indian steel sector to drive economic growth, create jobs, and generate wealth, urging proactive steps to mitigate the impact of unfair imports from China and strengthen the domestic steel industry.

He also spoke about the opportunity to leverage the mineral-rich states such as Jharkhand, Odisha, and Chhattisgarh, urging that India should not miss the chance to convert these mineral resources into industries that will create jobs.

Narendran pointed out that global conflicts and geopolitical events indirectly affect India, but the slowdown in China's economy poses the most significant challenge. He raised concerns over China's unfair competition in the steel market and called on the Indian government to take protective measures similar to those implemented by countries like the U.S., Canada, and several European nations to safeguard domestic industries.

Despite these global challenges, Narendran reassured that Tata Steel remains competitive and profitable in India, benefiting from the rising domestic demand for steel.