India’s government has hiked import duties on long and flat products each by 2.5%, according to various press reports in India citing steel ministry sources. Imports of bars/rods are now levied with a 7.5% tariff, while hot and cold rolled coil, galvanized coil and plate imports incur a 10% duty.

India’s steel ministry has for months been pressing the finance ministry to increase steel import duties in order to stem an influx of steel from East Asia. “Both the steel industry and the government are worried over dumping from China,” steel minister Narendra Singh Tomar said in April (see Kallanish 27 April).

Steel Authority of India, JSW Steel and Jindal Steel all reported their previous fiscal year performances were hampered by increased imports from China, Japan, South Korea and the CIS.

In its new fiscal year budget India increased its peak rate of basic customs duty on steel product imports from 10% to 15%, to enable a hike of up to 15% in actual steel import duties without requiring the consent of parliament (see Kallanish 2 March). However, import duties themselves did not change.

Ankit Miglani, managing director of cold roller Uttam Galva, has been quoted as saying the duty hike would bring respite to Indian steelmakers but local steel prices are unlikely to increase. “But given the fact that we are entering off-season and there is a lot of pressure on the market, [the duty hike] will allow Indian steel companies to maintain existing prices,” he observed.

GD Mundra, Sarda Energy and Minerals director, is quoted as saying, however, that the difference in the price of imports and domestic product is around 5-7%, meaning the 2.5% duty hike will have little effect.

Neither India’s steel ministry nor finance ministry could be reached by Kallanish for comment.