ArcelorMittal Nippon Steel India’s Director and Vice President for Sales and Marketing, Ranjan Dhar, has described the now-suspended US reciprocal tariffs as an opportunity to uplift manufacturing as a percentage of India’s GDP. Stating that these are still early days with trade flows and seaborne trade getting readjusted, he told CNBC TV18 that India, at a high growth path in development and consumption, shouldn’t become a market for low-priced imports, which may adversely impact manufacturing growth.
On export opportunities, he said that the industry will have to see how the issue of trade settles as several countries have erected tariff and non-tariff barriers, adding that the government is working overtime to ensure India isn’t impacted and an opportunity is created for domestic businesses.
While the company dubbed the impact of the European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM) as minimal in view of less than 5% exposure to Europe in supply of steel, it pointed out that it is working to end domestic shortage of Steel scrap with one scrap processing unit already up and running in Khapoli and plans to set up 4 more in different parts of India. Stating that rising availability of automobile scrap will ensure a steadier supply to curb imports, AM/NS India said that some projects in Maharashtra and Gujarat may kick off in the next few months.
With a 20% rise in imports, AM/NS India pointed out that the industry has faced headwinds with Steel prices at a four year low, in contrast with prices of automobiles and other products made from steel being pricier.(Edited by : Asmita Pant)
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