New Delhi, Tata Steel Chief Executive Officer (CEO) and Managing Director TV Narendran said on Wednesday that global steel players are struggling to make profits due to China's aggressive pricing, while the demand and consumption of this metal is increasing in India. Narendran said in a program organized in Dhanbad, Jharkhand on the New Year that the last two years have been difficult for the steel industry globally. He said that due to the restrictions imposed in China, especially during Kovid, there was a constant struggle to make profits along with reducing steel margins.

On the conflicts in many parts of the world, he said that these incidents also have a direct or indirect effect on India. He expressed concern over unfair competition from China and urged the central government to take steps to protect domestic industries. Calling upon the government to protect its industries against unfair steel imports from China, Narendran said that the steel sector has significant potential for wealth and employment generation. He said that the demand for steel in the country is growing at the rate of eight percent but the reduction in margins remains a challenge. He also stressed the importance of value addition.

China's steel became a challenge

India imported 15 lakh tonnes of steel from China in the first 7 months of 2024. This is 66.7 percent more than the import of 9 lakh tonnes in the same period of 2023. The price of steel imported from China is much lower than the steel produced by domestic companies. The increase in imports is having a direct impact on the sales of domestic companies. Their demand is decreasing. Due to this, the prices of domestic steel have also reached a 3-year low.

Troubled companies

Not only are big domestic companies like Tata and Jindal Steel troubled by this, medium-sized traders are also facing problems due to this. About 35 percent of steel companies falling in the category of small and medium enterprises had to close their plants between July and September. India ended the last financial year as a net importer of steel from China. These concerns have been raised before the government by companies like Tata and Jindal.