Indian Steel Factories Anticipate Price Drop Following Anti-Dumping Measures Against China

Indian steel magnates are buzzing with optimism as they anticipate a surge in domestic production and a drop in prices, thanks to the government's move against steel wheels from China.

In a recent development, New Delhi has initiated an anti-dumping measure on steel wheels imported from China, targeting unfair pricing practices.

Interestingly, though the market size for these wheels remains niche with a production of approximately 0.75 million tons per annum, insiders believe it's an enticing avenue. With increased participation, domestic prices are predicted to soften.

An industry insider commented, “Within a span of a few months, we can expect wheel manufacturers to pivot towards local steel producers, leading to a price decline.” Elaborating on the cost composition, they mentioned that in a typical steel wheel, the alloy represents about 30-35% of the price.

Another expert chimed in, “While the chrome finishing on the wheels comes with a price tag, the anticipated drop in steel prices should offset the overall costs.”

However, a trader from Zhejiang opined that the repercussions on China's export spectrum would be quite minimal, given that their steel exports to India form just a tiny fragment of their global shipments.

It's worth noting that the Indian steel sector has previously voiced concerns to authorities over potential market flooding by Chinese suppliers.

Between April and July, China stood as India's second-largest steel supplier, trailing only South Korea. They supplied a whopping 0.6 million metric tons, marking a significant 62% hike compared to the previous year. During the same span, India's steel import tally touched 2 million metric tons, witnessing its peak since 2020 with a 23% year-on-year rise.

Notably, China, being the global steel production leader, has predominantly shipped cold-rolled coil or sheets to the Indian market.

Source : Reuters (Reporting by Neha Arora and Amy Lv)