As New Delhi struggles with increased imports, the federal ministry of steel in India has requested the commerce ministry to look into cheaper steel imports from China and Vietnam, a government source with direct knowledge of the situation told Reuters on Wednesday.

According to provisional official figures, India, the second-largest producer of crude steel in the world, became a net importer of steel in the fiscal year that ended in March. The trend continued in April and May, with completed steel imports reaching a five-year high.

The source, who asked not to be named because the talks are private, told Reuters, "We have said that the trade ministry should investigate these imports and offer its recommendations to the finance ministry, which will take the final call."

Emails from Reuters requesting comments were not immediately answered by India's ministries of trade and steel.

India's JSW Steel informed Reuters last week that discussions regarding trade measures to counter growing imports, especially from China and Vietnam were taking place between the steel sector and the federal government.

The source went on to say that during a meeting two weeks ago, representatives of the European Union were persuaded by the steel ministry not to raise taxes on its industries that produce carbon.
According to a top official cited by Reuters on July 29, India has rejected an EU proposal to increase taxes on its carbon-producing businesses.

In an effort to achieve net-zero greenhouse emissions by 2050, the EU passed the first-ever plan to apply tariffs on imports of high-carbon goods, such as steel, aluminium, and cement, last year.

Separately, the source stated that in an effort to lessen the nation's reliance on Australia, its largest supplier, the steel ministry is in discussions with mills to diversify imports of coking coal, a crucial raw material used in the production of steel from nations including Russia, Canada, and the United States.

Approximately 70 million metric tons of coking coal are used by Indian steel industries each year, with imports making up about 85% of the nation's overall consumption.

The source claimed that several Indian companies had also placed experimental import orders with Mongolia for coking coal.

After months of discussions, steelmakers including JSW Steel and the government-owned Steel Authority of India (SAIL) were set to receive shipment of coking coal from Mongolia, Reuters reported earlier this month.
 

Image source: Reuters