AM/NS India Urges Immediate Safeguard Duty to Counter Chinese Steel Dumping Threat

ArcelorMittal Nippon Steel India (AM/NS India) has urged the central government to urgently implement a safeguard duty on select steel imports, warning of a potential surge in Chinese steel dumping that could destabilize India’s domestic market.

Ranjan Dhar, Director and Vice President (Sales and Marketing) at AM/NS India, said the Indian steel industry is under increasing threat as China’s overcapacity continues to flood global markets. “China produced around 1 billion tonnes of steel last year, but domestic demand hasn’t kept pace. With traditional export markets like Vietnam, Indonesia, and Malaysia boosting their production, the risk of excess Chinese steel being diverted to India is very real,” he told Moneycontrol on Tuesday.

China exported 110 million tonnes of steel in 2023, and with exports to the U.S. expected to slow due to ongoing trade tensions, Dhar warned that India could become the next dumping ground. This comes despite existing tariff barriers already in place.

To counter this, the Directorate General of Trade Remedies (DGTR) last month recommended a 12% provisional safeguard duty—ad valorem for 200 days—on certain steel products. Yet, the government has not moved on the proposal.

“These safeguard measures are critical,” Dhar said, pointing out that Indian steelmakers have razor-thin margins. “If these margins are not protected, banks will hesitate to fund future investments. That puts our plans for green steel and capacity expansion at serious risk.”

Safeguard duties are designed to shield domestic industries from sudden and unforeseen surges in imports that threaten long-term viability. The Commerce Ministry earlier emphasized their use in preventing permanent damage to key sectors.

AM/NS India, a joint venture between ArcelorMittal and Nippon Steel—the world’s second-largest steelmaker—is among the leading voices pushing for immediate policy action to ensure the financial health and future growth of the Indian steel sector.