Synopsis:
India's Steel Ministry is working on strengthening the reporting norms for steel import shipments by ramping up the Steel Import Management Systems portal, reports Business Line. This move comes in response to suspected instances of misreporting or under-reporting of shipment details. The Ministry aims to increase monitoring of imports and ensure a more accurate picture of the country's steel trade.
Article:
India's Steel Ministry is embarking on a mission to overhaul its steel import reporting mechanism, as concerns grow over the accuracy and completeness of shipment data. The Ministry has identified the need to strengthen reporting norms and is focusing its efforts on enhancing the Steel Import Management Systems portal, which was developed in 2019 to provide advance information about steel imports to the government and stakeholders.
The decision to revamp the SIMS portal comes in the wake of several suspected instances of misreporting or under-reporting of shipment details. An official familiar with the Ministry's plans has revealed that there is sufficient reason to believe that, in some cases, the true picture of import shipments or full requisite details have been deliberately withheld. As a result, the Ministry has made the rehaul of the SIMS portal one of its top priorities.
The SIMS portal is modeled after the US Steel Import Monitoring and Analysis system and requires importers of specified steel products to register in advance and provide necessary information online. This information is then monitored by the Steel Ministry to keep track of the country's steel imports. By strengthening the reporting norms and improving the portal, the Ministry aims to increase the effectiveness of its monitoring efforts and ensure a more accurate representation of the steel trade landscape.
According to a Steel Ministry report, India's steel imports stood at 8.3 million metric tons in FY24, representing a 38% year-on-year increase. Meanwhile, exports reached 7.4 million metric tons, up 12% from the previous year. Despite the growth in exports, India remained a net importer by around 1 million metric tons, as domestic demand remained strong. Finished steel consumption in India stood at 136 million metric tons for FY24, a 14% year-on-year increase, while finished steel production reached 138.5 million metric tons, up 12.4% from the previous year.
In addition to revamping the SIMS portal, India is also reportedly renegotiating some of its Free Trade Agreements to better monitor steel imports. The Ministry is exploring the option of implementing "melt and pour" rules, which would ensure that only steel products melted and poured in countries with which India has a trade agreement will be eligible for FTA benefits. This move aims to curb imports and support genuine manufacturers in other countries, rather than those who re-route their products through India.
The Steel Ministry's efforts to strengthen import reporting norms and monitor the steel trade more closely are part of a broader strategy to support the domestic steel industry and ensure a level playing field for Indian manufacturers. By improving the accuracy and completeness of import data, the Ministry can make more informed decisions and take appropriate measures to safeguard the interests of the Indian steel sector.
As the Steel Ministry works on implementing these changes, it is also focusing on other key initiatives, such as the development of a Green Steel policy and the exploration of alternative sourcing countries for coking coal. These efforts demonstrate the government's commitment to supporting the growth and competitiveness of the Indian steel industry in the face of evolving global trade dynamics.
Conclusion:
India's Steel Ministry's resolute endeavor to revamp its steel import reporting mechanism reflects the government's commitment to ensuring a more accurate and transparent picture of the country's steel trade. By strengthening reporting norms and enhancing the SIMS portal, the Ministry aims to increase the effectiveness of its monitoring efforts and support the domestic steel industry.
Source: STEELGURU
|
