Steel: Small steel companies postpone decision to cut jobs and production, decision after imposing duty on imports
New Delhi| The country’s small steel mills have put off plans to cut jobs and production for the time being after India imposed a 12 per cent security duty on five steel product categories to curb cheap imports.
Mill officials say that imposing duty to protect domestic producers is a good decision of the government. This may lead to a decline in steel imports from China. Adarsh Garg, chairman and managing director of Punjab’s Jogindra Group, said the imposition of security charges is a big relief for the loss-making industry and could provide an opportunity to increase prices. At present we have postponed the decision to cut jobs. We will see how the demand remains after this step.
Relief will increase demand for steel: Vedanta Goyal
Vedanta Goyal, director of Pune-based Enlight Metals, said the relief will increase demand for steel, which will help retain outside workers who are being laid off due to cheap imports. Atila Vidnel, managing director of Navigate Commodities, said India’s crackdown will put pressure on Chinese authorities to accelerate domestic steel production capacity reforms, so as to balance excess supply with declining local and global demand. The imposition of duty could stop steel imports and force importers to buy from domestic companies, research institute GTRI said.
