The Centre appears to be all set to expand its steel quality control norms following a review that revealed an increase in substandard imports, primarily from China, threatening local industry.
Avoiding Rising Substandard Steel Imports By Tightening Quality Norms
It appears that the Indian government is considering broadening its strict quality standards in response to the rising influx of substandard steel.
Interestingly, these impots are primarily originating from China, as per the government sources, as mentioned in the media report.
They have come to this decision following an in-depth review conducted by the Ministry of Steel in early October.
This review revealed the growing concerns about the sector’s exposure to trade diversions on a global scale.
As we know, India became a net importer of steel during the first five months of the current financial year.
The country imported 3.45 million tonnes (mt) of steel, compared to 1.92 mt of exports, as mentioned in the official data.
This increase in imports seems to be driven by global producers seeking new markets due to weak demand and high tariffs imposed by the US and the EU.
But it has a side effect as these conditions have heightened the risk of steel dumping into India, reportedly.
Need For Strengthening The Quality Control Measures
As we can see, this latest move by the government to tighten quality checks can be seen as a way to curb the flood of steel imports.
At present, various grades of steel are permitted for import in the country.
They are subject to a no-objection certificate (NOC) from the steel ministry, despite existing quality control orders (QCOs).
But going forward, NOCs will only be issued for steel grades not manufactured locally as confirmed by the officials in the report.
According to them this move would address the import of steel that doesn’t comply with the Bureau of Indian Standards (BIS).
The steel ministry appears to have issued norms for 1,279 steel grades under 151 QCOs.
So far, as many as 1,127 grades have been allowed to enter the country with NOCs.
Further, the Officials said that this loophole will soon be addressed, with the expansion of QCOs to cover a wider range of steel grades, as per the report.
