In India, riding on the robust Chinese demand, iron ore production and exports have peaked in recent years. India Brand Equity Foundation (IBEF) estimates iron ore production to grow by 25% to 153 million tons in 2016. The growth is expected to mostly buoy by SAIL, one of the Indian largest steelmakers plans to spend around US$24 billion in steel production capacity expansion.
Thanks to the new safeguard duty and minimum import price (MIP) policy measures enforced by the Indian Government, the India-based steel producers are protected from cheaper imports from China for the next several years.
The Indian Government recently ruled that a safeguard duty of 20% will be imposed on steel imports taken place between September 14, 2015, and September 13, 2016, including 18% for period between September 2016 and March 2017; 15% for period between March 2017 and September 2017; and 10% for period between September 2017 and March 2018. In addition, the steel industry in India is set to grow rapidly in the next three years, driven by the continuous rising demand in railways, roads and highways, and the auto industry.