AMNS India bats for protection for domestic steel industry as Trump tariff raises concerns of Chinese dumping

New Delhi: Steelmaker ArcelorMittal Nippon Steel (AMNS) India has raised concerns over the negative impact of the US reciprocal tariff on domestic steel, joining the chorus of Indian steelmakers seeking additional duty protection from the government to prevent excessive dumping of steel in India.

“The domestic steel industry needs protection as the Indian market does not have more appetite for imported steel that has already risen in recent months,” Ranjan Dhar, director and vice president - Sales and Marketing at ArcelorMittal Nippon Steel India, told reporters.

Speaking on the sidelines of a function to announce AMNS's green steel initiative following India's lead and finalisation of the green steel taxonomy, Dhar said China, the world's largest steel producer with over 1 billion tonnes of production, was among the steel exporting nations to the US.

“If the country (China) does not find a market for its steel in the US, and its domestic consumption remains low, it will have to divert it somewhere. India could be one market,” Dhar said.

Before AMNS, the country’s largest public-sector steelmaker Steel Authority of India Ltd (SAIL) had earlier raised concerns over Trump tariffs impacting the domestic steel industry. Changes in global trade flows would make India vulnerable to cheaper imports from countries with surplus production and a big market in the US.

Also read | Trump tariffs: No new shocks for Indian steel, aluminium, and auto makers

The Indian industry has already sought higher import duties on all steel grades. The Indian Steel Association (ISA), of which AMNS is also a part, suggested the imposition of a 25% safeguard duty on steel as against the 12% provisional duty proposed on certain grades of imported steel for 200 days by the Directorate General of Trade Remedies (DGTR), the anti-dumping body functioning under the Commerce Ministry.

China exports

India has become a net importer of the metal. In FY25, India’s steel trade deficit hit a 10-year high of 4.5 million tonnes (mt). Imports soared to 9.5 mt, the highest since FY16, while exports crashed to a decade-low 5 mt. Imports primarily come from China, though imports from acutely am and other Asean countries have also increased. Even today, the price of Chinese imports is lower than the cost of production of domestic steel.

Dhar said that countries like China export over 100 million tonnes of steel annually as they have developed their steel-making capacity beyond what they can consume domestically. The situation is the same for India, so the country does not have an appetite for imports barring a few special steel grades currently not being made in India.

The steel industry has estimated that India's steel imports could reduce by 50% in FY26. At the same time, domestic manufacturers' profitability is expected to improve if the government levies a safeguard duty on inbound shipments at a level higher than what has been proposed by DGTR.

Earlier this month, President Trump announced reciprocal tariffs on about 60 countries in a historic measure to counter higher duties imposed globally on American products. For India, the US has announced 26% reciprocal tariffs. However, automobiles, auto parts, steel and aluminium articles, already subject to Section 232 tariffs at 25%, announced in March, are not covered in the latest order.

Also read | Steel prices climb as ‘safeguard’ duty looms, user industries warn of inflation

AMNS, which is also in the midst of its over ₹60,000 crore investment Tito ramping up capacity at its Hazira plant from around 10 million tonnes to 15 million tonnes, is undertaking various initiatives towards the production of low-carbon emitting green steel. It plans to have 70% green steel under its portfolio by early FY27.

Emissions control

AMNS India’s existing and anticipated manufacturing footprint and sustainability actions are set to ensure the company is ready to deliver a significant proportion of green steel in confirmation with India’s new Green Steel Taxonomy, which is expected to be rolled out in FY 2026-27, the company said in a statement.

With these endeavours, AMNS is poised to become the first integrated steel company to achieve a three-star rating, the statement read.

The Green Steel Taxonomy for India was published in December 2024 by the steel ministry to provide a common language and framework on what constitutes lower-carbon steel, advance the decarbonisation of India’s steel industry, and catalyse demand for greener steel for and from India.

Also read | Green steel may be about to have its day in the sun

Green steel, as defined in the taxonomy, is categorized based on the emissions intensity of the steel plant where it is produced. To qualify, the CO2 equivalent (CO2e) emissions intensity must be less than 2.2btonnes of CO2e per tonne of finished steel (tfs). Steel with an emissions intensity above this threshold will not be eligible for a green rating, while steel produced below it will be rated on a three-tier system: three-star, four-star, or five-star green steel.

AMNS India’s confidence in its ability to lead the steel industry under the thresholds set by the taxonomy stems from its strong track record of emissions reduction over the past several years and its clear plans to build on this progress in the years ahead. AMNS India achieved a CO2 intensity of 2.17 tCO2/tcs in FY23—14% lower than the national average and aims to achieve a 20% reduction in carbon emissions intensity by 2030 to 1.8 tCO2/tcs from the 2021 baseline, Dhar said.

Lower carbon footprint

The company has already reduced its carbon emissions intensity by over 35% since 2015. Currently, 65% of AMNS India's steel capacity is derived from the Direct Reduced Iron (DRI) route that uses natural gas. This process has a low carbon footprint. Further, the ongoing expansion incorporates state-of-the-art technologies focusing on lowering carbon emissions.

A new scrap processing facility in Khopoli, Maharashtra, is already operational. Along with three additional centres under development, this facility will enhance the use of recycled materials, further reducing the company’s carbon footprint, the company statement said.

“As India pursues its decarbonisation goals toward net-zero emissions by 2070, it has pioneered the world’s first green steel taxonomy. This landmark initiative provides a clear road map for the steel industry to transition towards sustainable practices. AMNS India stands firmly aligned with this vision, and the initiatives we have undertaken give us confidence that we will be ready when this taxonomy is implemented,” said Dilip Oommen, chief executive officer, ArcelorMittal Nippon Steel India, in the company statement.

AMNS India is a joint venture between ArcelorMittal and Nippon Steel, the world’s leading steel manufacturing organisations. A leading integrated flat carbon steel producer in India, the company has a 9 million tonnes per annum crude steel capacity with state-of-the-art downstream facilities. It produces a fully diversified range of flat steel products, including value-added steel, with a pellet capacity of 20 million tonnes.