India May Impose Steel Import Tariffs To Counter Cheaper Imports From China: Report

India is considering extending an import tariff, on some steel products to counter cheaper imports primarily from China, according to a report by news agency Reuters. The world's second-biggest crude steel producer, had in August recommended a three-year import tariff of 11%-12% on some steel products as part of the final findings of the Directorate General of Trade Remedies (DGTR) that falls under the trade ministry.

The government had in April imposed a 12% temporary tariff for 200 days that lapsed earlier this month, according to the report. India's finished steel imports during the first seven months of the financial year were down 34.1% year-on-year. India is facing anti-dumping threats of cheap steel product imports from China, which are posing a challenge to the domestic steelmakers.

South Korea was the biggest exporter of finished steel to India during the period, shipping in 1.4 million metric tons of finished steel, followed by China, Japan and Russia, according to Reuters. Chinese steel exports made India "vulnerable", primarily due to cheaper prices.

China's steel output will slip below one billion tons this year for the first time in six years, on track to meet the government's pledge to reduce production, the state-backed steel association said late last month.

Beijing in late October unveiled a proposal for a more stringent steel capacity swap plan to reduce existing capacity, a move that is set to rebalance supply and demand in the sector contending with overcapacity.