India steel ministry seeks higher duties to deter Chinese imports

India’s steel ministry has sought an immediate increase in import duties on finished steel products to 15 percent from a range of 7.5 percent to 12.5 percent, citing a threat from Chinese imports and excess global capacity, an internal note reviewed by Reuters showed.

The steel ministry has proposed the higher duties as part of its recommendations to the finance ministry for the upcoming 2019/20 budget that is due out on July 5.

“The US-China trade war is threatening Indian markets as China looks for alternative markets” for its steel exports, India’s steel ministry said.

Citing the vulnerability of local mills, the ministry said the nation’s steel sector needs “protection from unfairly traded cheap steel imports” as well as lower input costs.

“Peak rates (for all steel products) may be raised to 25 percent to meet any contingency arising from potential adverse global market turmoil,” it said.