Why is India looking to temporary block steel imports from South Korea and Japan? During the first quarter of April, India’s steel imports from South Korea increased by 31%, while those from Japan rose by 30% according to Reuters. The flood of imports is so massive that the Indian government is contemplating steps to control imports, according to Minister Chaudhary Birender Singh
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“The issue is there and if we have to take some actions, and we will not hesitate on that account,” Singh said. Between April and June, Delhi became a net importer of steel, with international supplies reaching 2.1 million tonnes, 15% higher than the previous year.
With this development, India has now passed the US to become South Korea’s third-largest market for steel, according to data from the Korea Iron & Steel Association. Delhi could look at implementing safeguards and under the World Trade Organization (WTO) rules, safeguards are short-term constraints on imports to protect a domestic industry.
India’s imports of steel products used by railways soared to about 18,000 tonnes compared with 500 tonnes a year earlier, the Steel Ministry note said. Imports of steel products used in construction work doubled to nearly 22,000 tonnes during the same period.
The US imposed duties of 25% on steel and 10% on aluminium imports in March. South Korea was the fourth-largest steel exporter to the US, while Japan was the 10th largest, the Steel Ministry said in a report.