IGI Logo

India's finished steel imports from China surged to a seven-year high, with 1.1 million tons imported between April and August 2024, marking a 31.7% increase year-on-year. Overall, India’s steel imports reached 3.7 million metric tons, a six-year high, driven by strong domestic demand from infrastructure and automotive sectors. Meanwhile, domestic steel prices dropped in August due to a supply-demand mismatch, although consumption remained robust at 60.3 million metric tons, a seven-year high. Steel exports fell sharply to 1.9 million tons, a seven-year low, with exports to Italy, the top destination, declining 48.3%. Crude steel production increased by 4.2% year-on-year to 60.9 million tons.

Key Highlights

* India's finished steel imports from China hit a seven-year high in April-August 2024.

* Overall steel imports reached a six-year high at 3.7 million metric tons.

* Domestic steel consumption hit a seven-year high at 60.3 million metric tons.

* India's finished steel exports dropped to a seven-year low, down by 39.6%.

* Domestic steel prices dipped due to supply-demand mismatches and falling offers.

India’s finished steel imports from China soared to a seven-year high during the April-August period of the 2024/25 financial year, with 1.1 million tons shipped, marking a 31.7% year-on-year increase. Total steel imports for the country also surged, reaching 3.7 million metric tons, a six-year high. The domestic steel market has witnessed strong demand, driven by infrastructure and automotive sectors, further boosting consumption.

The drop in domestic steel prices in August highlighted the challenges facing the market, including a mismatch between supply and demand. The Indian steel ministry reported that rebar prices fell during the month, reflecting weaker market conditions. However, overall domestic steel consumption reached 60.3 million metric tons, marking a seven-year high and growing 13.8% year-on-year.

Other news from the steel sector includes a substantial rise in imports from Russia, which more than doubled to 54,000 tons, making Russia the fifth-largest exporter of finished steel to India. Despite the robust domestic demand, India's overseas exports were subdued, falling to a seven-year low of 1.9 million tons in the April-August period. Export volumes to Italy, India’s top export destination, fell by 48.3% year-on-year.

India’s crude steel production rose 4.2% year-on-year to 60.9 million tons during the same period, showcasing strong internal market growth despite sluggish overseas performance.

Finally

While India's steel imports surge, domestic demand remains strong, though challenges persist with supply-demand mismatches and falling exports.

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