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Indian stainless steel sector drowning in Chinese imports

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4 years ago

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The first half of 2021-22 has seen a 185 per cent increase in stainless steel imports compared to the average monthly imports in the last fiscal, creating havoc for the Indian players.

The import tide of stainless steel from China and Indonesia is fast turning into a deluge destroying many companies on its way, and threatening the very existence of the small, medium and micro industries in India. After all, the first half of 2021-22 witnessed a staggering 185% increase in import volumes of stainless steel flat products compared to the average monthly imports in the last fiscal, fuelled mostly by surge in Chinese and Indonesian imports.

The two countries China and Indonesia, which increased their exports by 300 per cent and 339 per cent, respectively, in the first half of this fiscal compared to the average monthly imports of the last fiscal, now have a share of 79 per cent of the total stainless steel flat product imports in the first half of FY22. It is a significant jump compared to the 44 per cent share in FY21. The average per month imports has jumped from 34,105 tonnes per month in FY21 to 63,154 tonnes per month this current fiscal–FY 22.

Indonesia’s imports share, which was virtually non-existent in 2016-17, has climbed to 23 per cent in the first half of this fiscal, with its average monthly exports increasing from 4,355 tonnes/month in the last fiscal to 14,766 tonnes/month in the first half of this fiscal. China’s average monthly exports too has jumped from 10,697 tonnes/month in the last fiscal to 35,269 tonnes/month in the first half of this fiscal.

The surge in imports was the result of the Finance Ministry’s decision of September 30, 2021 to revoke the imposition of CVD on China (September 2017) and end provisional duties on Indonesia (October 2020), which was based on the recommendations of the Director-General of Trade Remedies (DGTR), after a detailed investigation. The investigation had revealed that the two countries were resorting to non-WTO compliant subsidies to boost their exports to India and causing injury to Indian manufacturers.

In fact, the DGTR and their global counterparts had conclusively proved in its final finding that both these countries provide non-WTO compliant subsidies to the tune of 20 per cent to 30 per cent to their stainless steel manufacturers. And, these subsidies have created an imbalance in the Indian and international markets, reduced the competitiveness of Indian products in the domestic industry, causing material injury and persistent financial stress for home-grown businesses. It has forced the domestic industry to seek redressal from the surge in imports.

In fact, in India a disaggregated study of imported products in the first half of the current fiscal also reveals how excessive dumping has taken place in a particular J3 grade of stainless steel in the country. Imports of J3, a subsidised and dumped 200 series grade of stainless steel, with about 1 per cent nickel and 13 per cent chromium from China, has jumped from an average of 1,779 tonnes/month in 2019 to an average of 4,425 tonnes/month in 20-21 (249 per cent increase) and to average 25,346 tonnes to in just six months of 2021-22 (1,424 per cent) increase compared to the same period last year.

The share of this grade in total imports from China increased 23 per cent in 2019-20 to 72 per cent in 2021-22. Much of this import is even below the scrap prices and it hurts the MSME sector, the hardest. Such dumping also means major losses in terms of national exchequer through tax evasion and revenue losses.

This onslaught of Chinese exports to India has decimated the micro, small and medium enterprises (MSME), which had to bear the brunt of the impact. In fact, the imposition of provisional CVD on Indonesia in October 2020 and CVD on China in place from September 2017, had provided a “level-playing field” to these players, which got a much-needed relief from the dumped subsidised imports. The MSME, an industry having the capacity to produce about 1.2 lakh tonnes of hot and cold-rolled flat products, was able to operate at 90 per cent plus capacity utilization between October 2020 to February 2021.

However, the MSME sector suddenly finds itself grasping for breath to survive after the announcements of the 2021-22 Budget. Small-scale stainless- steel rollers and re-rollers, who make ingots from recyclable scrap as the first step in stainless- steel product manufacturing, and then produce hot and cold rolled materials for the all-India market, find themselves swamped by a massive and subsidised surge of imports from China and Indonesia.

Today, more than 80 induction furnaces and 500 patti/patta units, which provides primary raw materials for various downstream industries, are in dire straits. These downstream industries manufacture a variety of stainless steel household goods such as kitchenware, tableware, cooking range, sanitary items, cutlery pots, etc.

Prakash Jain, President, All India Stainless Steel Cold Roller Association, says: “The smaller Indian stainless steel players finds it virtually impossible to compete with the state-subsidised Chinese players, who get an 18 per cent incentive to export, under invoice their products by changing the label of the products to avoid paying duties and sell it at Rs 15 to Rs 17 per tonne cheaper in the Indian market.”

According to Jain, Gujarat has 70 rolling mills, each employing around 300 people and 50 induction furnaces, which makes ingots, the raw material for rolling mills and employs 500 each.

Not only will many of these jobs be lost resulting in massive unemployment but force many manufacturers to turn traders unless the CVD is imposed on imports from China and Indonesia.

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Colgate-Palmolive India’s Q2 profit falls 17 pc, revenue slips over 6 pc

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13 hours ago

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October 23, 2025

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Mumbai, Oct 23: Colgate-Palmolive (India) Limited on Thursday reported a 17 per cent drop in its net profit for the second quarter of the current financial year (Q2 FY26).

The company’s profit stood at Rs 327.50 crore for the quarter ended September 2025, compared to Rs 395.05 crore in the same period last financial year (Q2 FY25), according to its stock exchange filing.

Revenue also fell 6.15 per cent year-on-year (YoY) to Rs 1,519.50 crore, down from Rs 1,619.11 crore in the previous fiscal.

Operating income or EBITDA declined 6 per cent to Rs 465.43 crore, while the EBITDA margin was almost unchanged at 30.6 per cent, compared to 30.7 per cent last financial year.

Prabha Narasimhan, Managing Director and CEO of Colgate-Palmolive India, said the quarter’s performance reflected a temporary impact from disruptions among distributors and retailers due to the GST rate revision.

She added that the company has worked with its partners to ensure consumers benefit from the lower prices that took effect after the tax change.

“Despite the short-term challenges, we remain focused on our long-term strategic goals and will continue to invest in our brands,” Narasimhan said.

Alongside the results, the company announced a first interim dividend of Rs 24 per share for the financial year 2025–26, amounting to a total payout of Rs 652.8 crore.

The record date for the dividend has been set as November 3, and the payment will be made on or before November 19, according to the company’s exchange filing.

Colgate-Palmolive (India)’s quarterly results were released after market hours. On Thursday, its shares closed 1.16 per cent higher at Rs 2,286.90 on the NSE.

However, the stock has fallen 31.35 per cent over the past year and 14.69 per cent so far in 2025.

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UPI clocks highest ever single-day payments of Rs 1.02 lakh crore as GST rate cuts spur demand

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16 hours ago

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October 23, 2025

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New Delhi, Oct 23: Finance Minister Nirmala Sitharaman highlighted on Thursday that the unified payments interface (UPI) platform processed 754 million payments worth Rs 1.02 lakh crore on October 18, marking the highest single-day tally, as consumer demand surged due to the GST rate cuts.

During the three-day period between Dhanteras and Diwali, the average UPI volumes stood at 736.9 million — higher than 647.46 million in the corresponding period a month ago, the Finance Minister said.

“It has been a cracker of a Diwali for retailers this year as GST rate cuts have boosted consumption, enabling the middle class to add more items to their shopping bags this festive season,” she observed.

From lab-grown diamonds to casual wear and products to adorn homes, both mass and premium segments of the market picked up, Sitharaman remarked.

She pointed out that the roll-out of Goods and Services Tax (GST) 2.0 has injected fresh momentum into India’s growth story by enhancing household purchasing power, easing business operations, and simplifying tax administration.

“By rationalising slabs and lowering rates across a range of consumer goods, the reform has delivered tangible savings for households, freeing up disposable income and helping stimulate demand,” the Finance Minister added.

According to the Confederation of All India Traders (CAIT), Diwali sales soared to an all-time high of Rs 6.05 lakh this year.

This marks a 25 per cent jump over the 2024 festive sales of Rs 4.25 lakh crore from the Navratri to Diwali period and is the highest-ever sales in India’s trading history, according to Research and Trade Development Society, the research wing of CAIT.

Mainline retail accounted for nearly 85 per cent of total sales, indicating a strong revival of the brick-and-mortar market, the survey showed.

The reduction in GST rates across key consumer and retail categories such as confectionery, home decor, footwear, and ready-made garments, consumer durables and daily use items significantly improved price competitiveness and increased purchase momentum.

About 72 per cent of surveyed traders reported higher sales volumes directly attributable to reduced GST, according to the survey.

Consumers expressed greater satisfaction with stable prices amid festive demand, aiding consumption continuity post-Diwali.

The non-corporate and non-agricultural sector has emerged as a central pillar of India’s growth, driven by 9 crore small businesses, crores of small manufacturing units and the largest base of consumers.

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China Eastern Airlines resuming direct Delhi-Shanghai flights from Nov 9

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16 hours ago

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October 23, 2025

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New Delhi, Oct 23: China Eastern Airlines on Thursday announced the resumption of flights on its India route, and the direct flights between Shanghai and Delhi will start from November 9, in fresh momentum for people-to-people exchanges and economic and trade collaboration between New Delhi and Beijing.

The service will operate three times weekly — on Wednesdays, Saturdays, and Sundays. China Eastern Airlines has designated the Airbus A330-200, known for its long-range capability and comfortable cabin environment, for this route.

“The flight from Delhi, MU564, will depart at 7.55 p.m., arriving in Shanghai at 4.10 a.m. the following day. Flight MU563 from Shanghai Pudong International Airport will depart at 12.50 p.m. and arrive at Indira Gandhi International Airport, Delhi, at 5.45 p.m. local time. Tickets for the route are now available for sale,” the airline said in a statement.

The Shanghai and Delhi route is one of the most strategically significant air links between India and China, connecting the major economic and cultural hubs of both nations.

The resumption of this service marks the full restoration of China Eastern Airlines’ network in India.

InterGlobe Air Transport has been the exclusive General Sales Agent (GSA) for China Eastern Airlines in India since 2002, when the airline became the first Chinese carrier to offer direct flights between India and China.

The company manages comprehensive sales, marketing, reservation and ticketing, and operational support for the airline.

It will continue leveraging its extensive network and understanding of the Indian travel market to ensure the sustained success of this vital route, said the airline.

Earlier, low-cost airline IndiGo announced new daily direct flights between New Delhi and China’s Guangzhou from November 10. The airline said that the route will be operated using IndiGo’s Airbus A320 aircraft.

It recently announced daily flights between Kolkata and Guangzhou, starting October 26. The announcement came after the Ministry of External Affairs confirmed that India and China would restart direct flights between designated cities.

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