Indian steel companies face competition from China export rebate
Indian steel mills are likely to face more competition from rivals across the border in China after Beijing sought to raise export incentives on the primary infrastructure alloy by a third to help cushion the impact of demand destruction at home and overseas.
The Chinese move to raise export rebates to 13% from 10% for a large number of steel products might also prompt some Indian steelmakers to seek higher border tariffs if imports were to surge now.
The extent of competition and impact on pricing depends on the inventory pile-up in China, while the import percentage of steel from China has been reducing, said Indian Steel Association’s assistant general secretary, Arnab Kumar Hazra. “Thus, we need to wait and see if the imports surge,” he said. Indian companies are more worried about Chinese prices getting even more competitive, affecting India’s exports.