India's finished steel imports surged to 6.5 million metric tons in the first eight months of the fiscal year ending March 2025, a 26.6% increase from the previous year. This rise, driven by strong demand and economic growth, included 1.96 million metric tons from China and a six-year high of 1.4 million metric tons from Japan. As a net importer, India is exploring a potential safeguard duty to manage imports, while still finding growth opportunities in exports to the UK and Belgium.
India has experienced a remarkable increase in finished steel imports from China, reaching unprecedented levels during the first eight months of the fiscal year ending March 2025, according to provisional government data. This surge reflects the nation's robust demand for steel amidst ongoing economic growth and development initiatives.
In total, India imported 6.5 million metric tons of finished steel, marking a significant 26.6% rise compared to the previous year. As the world's second-largest crude steel producer, India has transitioned to being a net importer during this period.
Notably, China has been a key player, exporting 1.96 million metric tons of steel to India from April to November, which represents a 22.8% increase year-on-year. The exports primarily included stainless steel, hot-rolled coils, plates, electrical sheets, and various other steel grades, showcasing the diversity of products available to Indian consumers.
Japan also contributed to this trend, with its finished steel exports to India reaching a six-year high of 1.4 million metric tons during the same period, more than doubling from the previous year. Together, China, Japan, and South Korea accounted for an impressive 79% of India's total finished steel imports.
Hot-rolled coils emerged as the most imported steel product, while bars and rods led the non-flat product category. In response to the growing import levels, New Delhi has initiated an investigation to assess the potential implementation of a safeguard duty of up to 25%, aimed at managing the influx of foreign steel.
Despite becoming a net steel importer in the financial year ending March 2024, India's steel demand remains strong, buoyed by robust economic growth and a series of new infrastructure projects. This resilience stands in contrast to the challenges faced by smaller domestic mills, which are considering operational adjustments in light of the competitive market.
While finished steel exports from India have declined to an eight-year low, with Italy being the largest export market despite a 31.8% decrease, there has been positive growth in shipments to the UK and Belgium, rising by 16% and 6.9%, respectively. This indicates that while challenges exist, there are also opportunities for growth and adaptation within the industry.
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