US tariffs on steel and aluminium are a threat to India’s producers
Domestic output has been increasing on the back of capacity additions but India’s consumption has not kept pace.
India’s steel industry had been settling into a comfortable groove. The distressed assets tag for the industry is being addressed, with buyers interested in most large steel assets. Overall, demand is improving, prices are rising and new capacities have stabilized. In fact, the going was to get better as private investment demand is primed to recover in FY19 and beyond.
But the US president’s move to impose tariffs on steel and aluminium threatens to upset this calm. The government intends to impose a tariff of 25% on steel and 10% on aluminium, citing national security but the real reason is to increase domestic production. The final tariffs and any other measures to prevent imports will be known when the orders are signed.
Credit: livemint.com