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Indian stainless steel sector drowning in Chinese imports

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5 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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Swiggy’s Q2 net loss widens sequentially to Rs 922 crore

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13 hours ago

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October 22, 2026

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Food delivery and quick-commerce platform Swiggy on Thursday reported a consolidated net loss of Rs 922 crore for the quarter ended September 2026 (Q2 FY27), compared with a loss of Rs 791 crore in the preceding quarter (Q1 FY27).

However, the company’s losses narrowed from Rs 1,092 crore recorded in the corresponding period last financial year (Q2 FY26), according to its stock exchange filing.

Revenue from operations increased 36.1 per cent year-on-year to Rs 7,571 crore from Rs 5,620 crore, driven by growth across food delivery, quick commerce and out-of-home consumption segments.

Despite the robust revenue growth, total expenses climbed to Rs 8,703 crore from Rs 6,711 crore a year ago, as per its regulatory filing.

Swiggy’s core food delivery business continued to strengthen profitability during the quarter. Gross order value (GOV) for the segment rose 17.7 per cent year-on-year to Rs 10,054 crore, while adjusted EBITDA improved by Rs 101 crore to Rs 341 crore.

The adjusted EBITDA margin stood at 3.4 per cent of GOV, marking the business’s highest-ever profitability and margin performance.

The company’s out-of-home consumption business also maintained momentum, with GOV growing 34.9 per cent year-on-year to Rs 1,508 crore.

The segment reported its seventh consecutive quarter of profitability, delivering an adjusted EBITDA margin of 0.5 per cent of GOV.

Meanwhile, quick-commerce arm Instamart continued its expansion push. Net order value (NOV) rose 31.4 per cent year-on-year and 13.4 per cent sequentially to Rs 6,954 crore.

During the quarter, Instamart added 69 dark stores, taking its total network to 1,240 stores nationwide. However, the aggressive expansion continued to weigh on profitability. Instamart reported a loss of Rs 895 crore for the quarter.

Its contribution margin improved by 157 basis points year-on-year to minus 1 per cent of GOV, though it declined by 82 basis points on a sequential basis.

The segment’s adjusted EBITDA margin improved marginally to minus 9.7 per cent from minus 9.8 per cent in the previous quarter.

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Business

Adani Energy Solutions profit more than doubles to Rs 1,364 crore in Q2, revenue rises 51 pc

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14 hours ago

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October 22, 2026

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Adani Energy Solutions Ltd (AESL) on Thursday reported a 145 per cent year-on-year rise in consolidated net profit to Rs 1,364 crore for the quarter ended September 30, 2026, delivering record performance.

According to the company’s exchange filing, total income rose 51 per cent to Rs 10,239 crore in Q2 FY27 from Rs 6,767 crore in Q2 FY26.

Meanwhile, operational revenue grew 51 per cent to Rs 7,167 crore driven by healthy contribution from the transmission and energy solutions platform.

In Q2FY27, EBITDA stood at Rs 3,548 crore, an increase of 67 per cent year-on-year, while operating EBITDA rose 68 per cent to Rs 3,070 crore. This is an all-time high quarterly EBITDA for the company.

In addition, consolidated PAT jumped 137 per cent to Rs 2,600 crore for H1 FY27, while total income rose 46 per cent to Rs 20,092 crore.

Commenting on the earnings, Adani Energy Solutions CEO Kandarp Patel said, “AESL closed the first half of the fiscal year with strong financial and operational momentum, laying a robust foundation for future growth. We significantly expanded our growth pipeline by winning the strategic Vizag and Satara transmission assets, elevating our active order book to around Rs 87,000 crore.”

He said operationally, the Mumbai distribution business grew by about 11 per cent in units sold, while the smart metering platform scaled its installation base to approximately 15 million meters.

“A significant 2.5 GW RTC power supply contract with MSEDCL reinforced AESL’s core competencies in multi-source energy aggregation and power supply optimisation for customers,” Patel said.

“Backed by robust quarter-on-quarter performance across all business segments and strict financial prudence, we are well-positioned to convert this massive project pipeline into long-term stakeholder value,” he added.

Segment-wise, the company’s transmission operating revenue rose 17 per cent year-on-year to Rs 1,521 crore in Q2, while distribution (AEML and MUL) revenue grew 2 per cent to Rs 3,181 crore.

Smart metering operating revenue (Ind AS) surged 129 per cent to Rs 267 crore and energy solutions revenue stood at Rs 2,197 crore.

Shares of Adani Energy Solutions ended at Rs 1,293 on the BSE. The Adani Group stock has recorded a 52-week high of Rs 1,789 and a 52-week low of Rs 804.70, according to the exchange data.

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Business

Sensex, Nifty open lower as Asian markets tumble, crude oil climbs

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19 hours ago

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October 22, 2026

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Indian equity benchmarks opened lower on Thursday tracking weak Asian markets and concerns over elevated crude oil prices and high US bond yields.

Sensex opened 366.36 points or 0.50 per cent lower at 73,343.33, while Nifty began the trading session at 22,687.75, declining 123.60 points or 0.54 per cent.

Sector-wise, most indices traded in the red with auto, metal and healthcare shares leading losses in early trade.

Nifty Auto, Nifty Metal and Nifty Healthcare declined up to 0.98 per cent. Meanwhile, Nifty Pharma also slipped 0.78 per cent.

Broader weakness was also visible across FMCG, realty, cement and financial stocks.

Analysts said the recent trend of large-cap stocks outperforming mid and small caps appears to be gathering momentum as valuation concerns emerge in the broader market.

“The broader market resilience in recent months has been more a function of liquidity than earnings. This has created a paradox of overvalued mid and small caps coexisting with attractively valued large-caps. This trend is now getting corrected and is likely to sustain,” they said.

The eperts also pointed to external headwinds, including rising crude prices and elevated US Treasury yields which are encouraging traders to build short positions despite continued institutional buying.

“Sectoral churn towards fairly valued large caps is the ideal investment strategy now. It may take time, but this strategy will certainly be rewarded,” they added.

Technical analysts said the recent sharp decline and the breach of the 22,700 level on the Nifty raised the risk of a deeper correction.

“Recovery hopes rest on the ability of 22,590 to hold, but a move back above 22,840 will be needed to confirm renewed upside strength,” according to them.

On Wednesday, foreign institutional investors (FIIs) turned net buyers and purchased equities worth about Rs 1,022 crore. Domestic institutional investors (DIIs) also remained buyers with net purchases of around Rs 1,614 crore.

In Asian markets, major indices remained under pressure. Japan’s Nikkei, Hong Kong’s Hang Seng and South Korea’s Kospi dropped up to 2 per cent in early trading.

Overnight, Wall Street ended higher led by technology shares. The Nasdaq advanced around 1 per cent after strong corporate earnings boosted sentiment around artificial intelligence-related stocks, while the S&P 500 gained 0.58 per cent.

Meanwhile, Brent crude futures rose more than 1 per cent to trade around $110 per barrel, adding to inflation concerns and weighing on investor sentiment.

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