IGI Logo

India's finished steel imports from China reached a record high in the first eight months of FY25, with 1.96 million metric tons shipped, a 22.8% increase year-on-year. Overall, steel imports rose 26.6%, hitting an eight-year high, with China, Japan, and South Korea accounting for 79% of total imports. The surge has impacted India's smaller mills, forcing operational cuts, as New Delhi considers safeguard duties to curb the influx. While India's steel demand remains strong, driven by infrastructure growth, finished steel exports plunged to an eight-year low. Italy remained India's top export destination, although exports fell by 31.8%.

Key Highlights

* India’s steel imports hit an eight-year high in FY25.

* Imports from China surged 22.8%, reaching 1.96 million metric tons.

* China, Japan, and South Korea dominate 79% of imports.

* Smaller Indian mills face operational cuts due to cheap imports.

* Finished steel exports hit an eight-year low during the same period.

India’s finished steel imports reached a significant milestone in FY25, hitting an eight-year high during the first eight months. Imports surged by 26.6% year-on-year to 6.5 million metric tons, underscoring rising concerns over cheap inflows from global players. China alone accounted for 1.96 million metric tons of finished steel, a 22.8% increase from last year, dominating India’s steel import landscape.

Supporting this trend, Japan and South Korea contributed significantly, with Japan’s exports to India more than doubling to 1.4 million metric tons. Together, the three nations accounted for 79% of India’s total steel imports. Key products included hot-rolled coils, bars, and rods, with hot-rolled coils topping flat product imports.

Meanwhile, India’s robust steel demand, fueled by infrastructure growth, has provided a steady market for these imports. However, the influx has strained smaller domestic mills, pushing them to scale back operations. New Delhi is now considering safeguard duties of up to 25% to counteract the surge.

On the export front, India witnessed an eight-year low, with total finished steel exports declining. Italy, the top buyer, saw a 31.8% drop in imports from India, although shipments to Britain and Belgium rose moderately.

Finally

India’s record steel imports highlight the pressure on domestic mills, while potential safeguard duties aim to restore balance. Exports, however, continue to struggle amidst rising competition.

Above views are of the author and not of the website kindly read disclaimer