China Leads India’s Steel Imports in April-September, Govt Data Reveals

India’s steel industry is grappling with increasing import volumes, especially from China, as the country remains a net importer of finished steel. According to provisional government data, India imported 4.7 million metric tons of finished steel from April to September 2024, a sharp rise of 42.2% compared to the same period last year. The primary contributor to this spike was China, which exported 1.4 million metric tons to India, marking a 36.7% increase from 2023.

The surge in imports has sparked concerns about the domestic market’s stability, with cheaper imports from China being cited as a key factor in keeping market sentiment subdued. Among the key products imported, hot-rolled coils accounted for the largest share, making up 44% of India’s total finished steel imports. Other products from China included stainless steel, galvanised sheets, pipes, and bars.

This growing reliance on imports from China, as well as from South Korea, Japan, and Vietnam, has raised alarms within the Indian steel industry. Tata Steel’s CEO recently warned that sustained imports from China could negatively affect the domestic sector’s long-term investment plans. Despite India’s domestic production increasing by 4.7% to 70.6 million metric tons during the same period, the surge in imports is a stark reminder of the challenges faced by local manufacturers in maintaining market share. Exports of Indian steel also took a hit, with a 35.9% decline recorded in the April-September period, totalling just 2.3 million metric tons. While Italy remains India’s largest export market, exports to key destinations such as Belgium, Nepal, and Spain have slowed significantly. This downturn in exports could further strain the financial health of domestic manufacturers, especially as global demand fluctuates.

India’s anti-dumping investigation into certain steel imports from Vietnam adds another layer of complexity to the situation. Such measures reflect growing concerns about unfair trade practices and the protection of the domestic industry. However, the broader issue of steel imports is indicative of India’s ongoing struggle to balance local production capacity with international competition. From a sustainability perspective, this rise in imports raises questions about the environmental footprint of steel production. While India’s crude steel production grew by 3.6% to 72.8 million metric tons during the period, the reliance on imports could undermine efforts to reduce carbon emissions associated with steel manufacturing. India’s steel sector is already under pressure to meet stringent environmental regulations, and the influx of cheaper, possibly less sustainable steel imports could hinder these efforts.