Indian steelmakers urge government for minimum import price amid global slump

Domestic steelmakers have urged the government to impose a minimum import price, seeking further support as prices remain under pressure despite a 12% interim safeguard duty. The levy is inadequate amid falling global prices, said industry executives.The move comes ahead of the interim duty expiring next month.According to data shared by local manufacturers with the Centre, hot rolled coils (HRC), the benchmark product, has been trading at 10-15% lower than the ₹52,900 per tonne since the safeguard duty was imposed.Sector watchers say major Indian steel producers can manage net profit margins of just 2.1-2.3%, dipping in some quarters to as low as 0.3%."The industry will need extended support to continue investing to meet steel output goals," a company representative said on condition of anonymity.Increasing safeguard duty isn't the only measure to provide support to the domestic industry, according to analysts, who said the Centre needs to protect consumers as well."The safeguard duty can be increased only to an extent... It can't move one way, ignoring the price steel consumers pay," Amit Bhargava, partner and national head mining and metals, KPMG in India, told ET.He said global steel supply is expected to outpace demand and raw material prices for steel production are projected to remain flat or even decline."There's not going to be any significant demand revival in major steel-consuming centres such as China or Europe. The iron ore prices will also remain range-bound," Bhargava said.