India’s finished steel imports from China have reached a six-year high in the first two months of the fiscal year beginning in April, according to provisional government data. The overall steel imports in India also hit a three-year high during this period.
In April and May, China emerged as the second-largest steel exporter to India, selling 0.2 million metric tons of the alloy, a 62% increase compared to the same period last year. Imports from China accounted for a quarter of India’s total finished steel imports.
Overall, India imported 0.9 million metric tons of finished steel in April and May, the highest since 2021, and a 27% rise from the previous year. China primarily exported cold-rolled coil or sheets to India, which constituted the major portion of India’s imports during this period, accounting for a 30% share in overall finished steel imports.
Analysts predict that China is set to export the most steel this year since 2016, due to the weakening yuan and competitive prices. These factors have helped the country offload its surplus metal amid weak domestic demand.
India’s federal steel ministry is considering imposing a countervailing duty on steel imports from China to protect its domestic industry. Meanwhile, South Korea emerged as the top exporter of finished steel to India in April and May, shipping 0.4 million metric tons and accounting for 38% of India’s total imports.
Despite being the world’s second-largest crude steel producer, India was a net exporter of finished steel during this period. It sold 1.6 million metric tons of finished steel to top buyers including Italy, Spain, Belgium, Nepal, and the United Kingdom.
During April and May, India’s finished steel exports to Italy reached their highest level in six years. The country’s crude steel production in the same period stood at 22.4 million metric tons, representing a 6% increase from the previous year. Additionally, consumption of finished steel reached 20.3 million metric tons, the highest in six years and an 8% rise from the previous year.
India’s increasing steel imports from China and its position as a net exporter of finished steel highlight the complex dynamics within the global steel industry. As China’s steel exports surge, countries like India are grappling with striking a balance between protecting their domestic industries and meeting their steel demands.
The future of India’s steel industry depends on factors such as domestic consumption, exports, and government policies to incentivize domestic production. As the industry continues to evolve, stakeholders will closely monitor trade patterns and their implications for local steel producers.
