India’s Steel Producers Expect Boost After Anti-Dumping Duty on Chinese Steel Wheels
Published on September 12, 2023
Introduction
India’s steel producers are optimistic about the impact of the anti-dumping duty imposed on steel wheels produced in China. The decision by the Indian government is expected to boost local manufacturing and lead to a decrease in steel prices. This move is aimed at addressing predatory pricing practices.
Boost to Local Manufacturing
- Indian steel producers anticipate an increase in demand for locally manufactured steel wheels.
- The smaller market size of steel wheels in India makes it a lucrative segment for steel producers.
- Increased competition in the segment is expected to drive down domestic prices.
Impact on Steel Prices
- With a lag effect of two to three months, wheel manufacturers will turn to domestic steel producers, leading to a fall in prices.
- The cost of the alloy in a steel wheel is around 30-35% of the total cost, and lower steel prices will help reduce overall prices.
Limited Impact on Chinese Export Market
The anti-dumping duty on Chinese steel wheels is expected to have a relatively limited impact on the Chinese export market. Shipments to India account for a small portion of China’s total steel exports.
Concerns about Dumping
The Indian steel industry has raised concerns about potential dumping of steel by Chinese sellers. This move by the Indian government aims to address these concerns and protect the domestic steel industry.
China’s Steel Exports to India
During April-July, China was the second-largest steel exporter to India, after South Korea. China mainly exported cold-rolled coil or sheets to India.
Conclusion
The anti-dumping duty on Chinese steel wheels is expected to have a positive impact on India’s steel industry. Local manufacturing is set to receive a boost, and competition is expected to lead to lower steel prices. This move by the Indian government aims to protect the domestic steel industry from predatory pricing practices.
Reporting by Neha Arora in New Delhi and Amy Lv in Beijing; editing by David Evans
Our Standards: The Thomson Reuters Trust Principles.
