The Indian government mulls to restrict the import of aluminium ingots from Malaysia and steel from Turkey following a political tussle with these two countries.
Malaysia exported 83,289mt of aluminium ingots to India in the Jan-Nov 2019 period, as against 104,154 in the prior year period. In November 2019, India imported 4,196mt ingots from Malaysia against 9,494 in 2018.
The prices of aluminium ingots imported from Malaysia are Rs10,000 to 15,000/mt lowered compared to the domestic market. Some aluminium producers from the southern India depend on aluminium ingots procured from Malaysia. No immediate impact is expected, if imports from Malaysia are restricted, but once the auto demand picks up the move will increase the input cost of auto ancillary, said a die-casters aware of this development.
Importers of steel from Turkey have an option to look elsewhere in Europe and Africa. Importers and traders of steel expressed little concern over this development.
Prime Minister of Malaysia Mahathir Mohamad had said that India was “invading and occupying the country” of Jammu and Kashmir. On Dec 20, he said that India’s Citizenship Amendment Act would deprive some Muslims of their citizenship. Turkey’s President Tayyip Erdogan had said Kashmiris are “virtually under blockade”. These comments have irked the India government and it plans to express its displeasure by economical whiplash. India hiked tariffs on palm oil imports from Malaysia.