A surge in cheap steel imports into India is forcing many smaller mills to either cut production or close their units, threatening the country’s goal of expanding capacity, a top government official said.

About 150 mills have stopped operations, while another 50 have reduced output as local steel prices hover near five-year lows, Steel Ministry Secretary Sandeep Poundrik said at an industry conference in New Delhi on Tuesday. Almost half of India’s steel output flows from hundreds of small and medium enterprises, now under strain due to low prices, he said.

“All players are facing problems,” Poundrik said. Pricing pressures have also reduced the profit margins of big players like JSW Steel Ltd., he said, adding that the government was ramping up quality checks to stem the inflow of subst

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