The US tariffs on Chinese exports have impacted the refractory industry, with China considering countermeasures such as imposing export tariffs on refractory raw materials to protect its domestic industry. Despite these challenges, China remains a key supplier of refractory materials to the US due to its competitive pricing and availability of these materials.
More than 40% of India’s refractory raw materials are currently sourced from China. This includes key materials like graphite, fused and calcined alumina, high-grade clays, and magnesite, which are essential for various high-temperature processes in industries such as steel, cement, and ceramics. However, Indian companies are actively exploring alternative sources to reduce this dependence due to geopolitical tensions and supply chain risks.
China is a significant supplier of refractory materials to the United States. In 2023, the US imported refractory bricks and similar goods from China, with a value of approximately $10.9 million and a quantity of 6,263 MT. In 2024, this figure increased to $53.11 million. These imports include various refractory products and raw materials, such as mullite, bentonite, kyanite, andalusite, and sillimanite, which are crucial for high-temperature applications in industries like steel and ceramics.
The impact of US tariffs on refractory raw materials from the USA and China in India involves several key considerations:
Impact of US Tariffs on Refractory Raw Materials
Under new US policies, India faces a 26% tariff, which is lower than the tariffs imposed on China and Vietnam. However, this still affects Indian companies importing raw materials from the US, as they must pay higher costs. India’s refractory industry does not heavily rely on US imports for raw materials. Instead, it sources a significant portion from China and other countries.
The US has imposed significant tariffs on Chinese exports, including refractory materials like mullite, bentonite, kyanite, andalusite, and sillimanite. This affects China’s ability to export these materials competitively.
Strategic Implications for India
Indian companies might seek alternative sources for refractory raw materials, such as Brazil, Turkey, or Europe, to reduce dependence on China and mitigate potential supply chain disruptions. Encouraging domestic production of refractory minerals could help reduce reliance on imports and stabilize supply chains. The ongoing trade tensions between the US and China could lead to shifts in global supply chains, potentially benefiting India if it can position itself as a reliable manufacturing hub.