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India saw a notable increase in steel imports from April to September, led predominantly by shipments from China, with other significant contributors being South Korea, Japan, and Vietnam. According to government data, India's steel imports rose by 42.2% year-on-year, with China alone accounting for 1.4 million metric tons. Hot-rolled coils emerged as the most imported product, making up 44% of the total finished steel imports. Despite being the world’s second-largest crude steel producer, India’s dependence on imported steel could impact domestic investments, as Tata Steel’s CEO highlighted. Concurrently, India’s steel exports fell by 35.9%, signaling shifting dynamics in the sector.

Key Highlights

* India’s steel imports rose 42.2% from April-September.

* China led exports to India, sending 1.4 million metric tons.

* Hot-rolled coils made up 44% of imports.

* Domestic finished steel production grew by 4.7%.

* Finished steel exports dropped by 35.9%, with Italy as the top buyer.

India's steel import landscape is changing as the country’s imports surged 42.2% year-on-year from April to September, totaling 4.7 million metric tons. China led this influx, exporting 1.4 million metric tons, marking a 36.7% increase from the prior year. The most imported product was hot-rolled coils, constituting 44% of all finished steel imports, as per government data. Other products from China included stainless steel, galvanized sheets, plates, and pipes. Lower import costs have exerted downward pressure on local steel prices, impacting market sentiment in India.

Supporting this trend, other key suppliers - South Korea, Japan, and Vietnam - saw significant growth in exports to India. South Korea shipped 1.2 million metric tons, up 11.5%, while Japan and Vietnam more than doubled their shipments. These growing imports raise concerns for domestic producers, as Tata Steel's CEO warned about potential threats to local investment plans due to prolonged imports from China.

On the domestic front, India produced 70.6 million metric tons of finished steel, a 4.7% rise, while consumption rose by 13.5% to reach 72.7 million metric tons. However, exports were down, dropping 35.9% to 2.3 million metric tons. Italy remained the largest market, but shipments there declined 43.5%. With imports on the rise, India's trade balance for steel could face continued pressure in the coming months.

Finally

India’s increasing steel imports and declining exports underscore significant shifts in trade dynamics, potentially affecting the domestic steel industry’s future investments and market stability.

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