India’s mining community is appealing to the government for protection from market flooding of cheap aluminium and other metals from the People’s Republic of China in the form of higher import taxes.
Reuters reported earlier this week that the Federation of Indian Mineral Industries (FIMI) has requested from the government a raise on imports to between 10 and 15 percent and a bump in scrap metal taxes from 2.5 percent to 10 percent.
FIMI indicates that aluminium demand in India is likely to rise to 4.2 million metric tons by March of next year. Indian aluminium production is expected to reach 4.6 million metric tons, but cheaper imported aluminium is expected to meet over half of the domestic demand.
“The major threat of imports is from China, which constitutes over 85% share of downstream aluminium imports.”
Per FIMI, the majority of cheap scrap aluminium imports originate from the United States, the United Kingdom, Saudi Arabia, and the United Arab Emirates.
The head of Hindalco also spoke out earlier this week on the subject. Satish Pai cautioned the nation regarding the Middle Kingdom.
“We should be careful not to allow the Chinese to dump into India just because their economy is in trouble.”
FIMI also asked for the erection of trade barriers against other metals, such as a 2.5-percent hike in copper and zinc imports. It also appealed for an end to the 50-percent low-grade iron ore exports that was implemented in May.