India’s steel imports from China reached a historic 1.7 million tonnes during April-October 2024, reflecting a sharp 35.4% year-on-year increase. This surge underscores China’s growing influence on India’s steel market, raising concerns about the pressure on domestic producers grappling with cheaper foreign products.
According to preliminary government data, China remains India’s top steel supplier, exporting stainless steel, hot-rolled coils, galvanised sheets, and electrical steel. Total imports of rolled steel into India during this period climbed to a seven-year high of 5.7 million tonnes, with China, South Korea, and Japan collectively accounting for 79% of these imports. The unprecedented import volumes come amid India’s robust economic growth, driven by infrastructure expansion, urbanisation, and burgeoning industrial activity. Domestic steel consumption also hit a seven-year high, reflecting strong demand. However, the influx of cheaper Chinese steel poses significant challenges to Indian steelmakers, many of whom are already reeling under financial strain due to falling domestic steel prices. In response, the Ministry of Steel has proposed imposing a 25% safeguard duty on flat steel products for two years.
The measure, outlined in a letter to the Ministry of Commerce on November 27, aims to curb the inflow of low-cost imports and protect the domestic steel sector. Interestingly, while imports surged, India’s steel exports during the same period declined by 29.3% year-on-year, with Italy emerging as the largest buyer. Despite the drop, shipments to the United Kingdom recorded a notable 15% growth. This trend highlights India’s evolving position in the global steel market. In FY2023-24, India became a net importer of rolled steel for the first time, importing 8.3 million tonnes (+38.1% year-on-year) against exports of 7.5 million tonnes (+11.5% year-on-year). Domestic steel consumption surged by 13.4%, reaching 136 million tonnes during the period. As the debate around safeguard duties unfolds, India’s steel industry faces a pivotal moment. Balancing high domestic demand with strategic trade policies will be critical in ensuring the sector’s long-term sustainability.
