Business.Business: Indian steel companies are going through a very bad phase. China is constantly dumping cheap steel in India. This is causing huge losses to domestic steel companies and their profits are also under pressure. However, now Indian steel companies can get relief. Heavy Industries Minister HD Kumaraswamy says that the government will take every possible step to stop steel dumping from China. This indicates that the government may increase the import duty on steel.
HD Kumaraswamy, Heavy Industries Minister
Why is China selling cheap steel?
China is the biggest player in the steel market. But, demand has been weak there since 2020. Things got worse due to the increasing property crisis in China. This brought the price of steel to its lowest level in many years. In such a situation, it started dumping its steel in countries like India at cheap prices. Big Chinese steel companies believe that the demand for steel there is going to remain weak for a long time. Indian steel manufacturers are constantly appealing to the government to curb China’s steel dumping, as it is ruining the domestic industry.
How is the condition of steel firm shares?
The shares of steel companies have been sluggish for a long time. Big companies like JSW Steel and Tata Steel have given a return of about 15 percent in the last one year. On the other hand, investors have lost 2 percent in one year from Usha Martin Limited. This is the condition of steel companies in the era of bull market, when the shares of most companies of the sector are witnessing tremendous growth.
