Steel players ready capex plans to substitute cheap imports for industry

Domestic primary steel producers are aiming their capital expenditure at substituting imports, that have risen and are capturing the market because of low-priced products.

“There is a strong import substitution plan in place. We have developed new grades that substitute imports from Russia in segments such as defence, submarine and shipbuilding,” said a senior official with state-owned Steel Authority of India (SAIL).

Besides SAIL, Tata Steel, Sajjan Jindal-led JSW Steel and Naveen Jindal-led Jindal Steel & Power are two of the big primary steel producers in the country.

During April to November 2018, India’s finished steel imports surpassed exports by 0.7 million tonne,