Steel Industry Panel Pushes for Import Substitution of High-Value Products

Focus on Domestic Self-Reliance

A high-level parliamentary panel recently met with top steelmakers to discuss strategies for reducing reliance on imports, particularly for high-value steel products. The discussions focused on 'import substitution,' aiming to boost domestic manufacturing capabilities for specialized grades of steel used in the automotive and power transmission sectors. This move is seen as critical for insulating the domestic market from global supply chain shocks.

Automotive and Electrical Steel

The specific grades under review include Cold Rolled Grain Oriented (CRGO) steel and various high-strength alloys essential for electric vehicles and transformers. Currently, a significant portion of these high-tech steel products is imported. Industry leaders are proposing new incentives and technological partnerships to fast-track local production. This shift is expected to alter trade flows and potentially tighten the market for imported specialty steels in the medium term.

Global Market Dynamics

Globally, steel prices have remained volatile. While the push for localization is strong in developing economies, the global market is dealing with excess capacity in standard grades and weak demand from the construction sector in China. This divergence has created a two-speed market where standard construction steel faces price pressure, while specialized, high-performance steel grades command a premium due to limited supply and high technical barriers to entry.