Growing steel imports as well as a negative trade balance in steel products have been worrying the Indian steel industry of late. In October 2023, India's steel imports outstripped exports by 0.28 million tonne (MT).

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Chairman and managing director of Tata Steel, TV Narendran has described India's status as a net importer of steel as a matter of concern, stating that the government has assured of intervention if imports continue to rise.

While he attributed the softening of international steel prices to a large amount of production by China, president of the Indian Steel Association and CEO of ArcelorMittal Nippon Steel India Dilip Oommen termed China as a threat to the world's steel industry.

Oommen explained that China's steel production has fallen but its production hasn't, which has led to an increase in steel exports by India's northern neighbour.

Describing India's position as the spotlight in global steel consumption, he warned that India faces the highest threat of cheap steel imports flooding its domestic market if action isn't taken in time.

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While he pointed out that many commodity steels coming into India can easily be produced by domestic players, he suggested that BIS certification should be curtailed for those imported steel products that the local industry is capable of producing.

Defending the idea of import substitution in the steel sector, he clarified that all countries have put up trade barriers in some form or the other, be it the Carbon Border Adjustment Mechanism (CBAM) or import duties.

Commenting on the impact of the proposed scrap metal export restrictions by the European Union (EU), Oommen told CNBC-TV18 that scrap will be a precious commodity in the future as all countries will try to use their own scrap.

Stating that India won't be able to import scrap in the future, he stressed the need to ensure the establishment of processing facilities for scrap being generated within the country.

While he added that the steel industry and relevant ministries are in discussions to make the existing PLI scheme more effective, Narendran informed that a proposal has already been given for decarbonisation of Tata Steel Netherlands which will be discussed with the Dutch government.

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He refused to comment on the funding aspect of the proposal, which is currently being looked at by the Dutch government.