Small steel companies defer decision to cut jobs and production, decision after imposition of duty on imports

With India having imposed a 12 percent tariff or safeguard duty on five categories of steel products to slow down cheap imports, the nation's small steel mills have postponed plans to reduce jobs and production at least for now.

Mill officials say that the imposition of a duty to protect domestic producers is a good decision by the government. This may lead to a decline in steel imports from China. Adarsh ​​Garg, chairman and managing director of Punjab-based Jogindra Group, said, "Imposition of safeguard duty is a big relief for the loss-making industry, and it may provide an opportunity to increase prices. For now, we have deferred the decision to cut jobs. We will see how the demand remains after this move." 

Vedant Goyal, director of Pune-based Enlight Metals, said, "This relief will increase the steel demand, which will help retain the foreign workers who are removed due to cheap imports." Attila Widnell, managing director of Navigate Commodities, said, "India's strictness will increase the pressure on Chinese authorities to speed up the mandatory domestic steel production capacity improvements, so that the excess supply can be balanced with the fall in local and global demand." Research institute GTRI said, "Imposition of duty may stop steel imports and importers may be forced to buy from domestic companies."