India's government is considering imposing a countervailing duty on steel imports from China amid a surge in supplies
In April-May 2023 (the beginning of the 2023/2024 financial year), India increased steel imports from China by 62% compared to the same period in 2022 – up to 200,000 metric tons. Thus, purchases of Chinese steel during this period reached a 6-year high. Reuters reports about it.
In April-May, China became the second largest supplier of steel to India, occupying 25% of the total import of steel products to the country.
In total, in the first two months of the 2023/2024 financial year, India imported 900,000 metric tons of steel products, which is 27% more compared to the same period of the previous financial year. This indicator is the highest in the last three years.
Chinese producers exported mostly cold-rolled coils or sheets to Indian consumers. Such products constituted the bulk of India’s imports, accounting for 30% of total steel supplies.
China is expected to export the largest amount of steel since 2016 in 2023, as a weaker yuan and competitive prices help ship excess steel amid weak domestic demand. India’s Ministry of Steel has already responded to the sharp increase in Chinese steel presence in the market and is considering the possibility of introduction of countervailing duty on the import of relevant products.
The largest exporter of steel products to India in April-May was South Korea – 400,000 tons. The production of South Korean steelmakers accounted for 38% of India’s total imports.
At the same time, steel exports from India in April-May amounted to 1.6 million metric tons. The main consumers of products are Italy, Spain, Belgium, Nepal and Great Britain.
During this period, steel production in the country increased by 6% compared to April-May 2022 – up to 22.4 million tons. The consumption of finished steel amounted to 20.3 million metric tons, which is 8% more y/y and is the highest in 6 years.
As GMK Center reported earlier, in April 2023, the Indian Steel Association appealed to the relevant ministry with a request intervene in the situation with the growth of steel imports. Steelmakers of the country demanded the re-introduction of anti-dumping duties on certain types of flat products (hot-rolled products with a coating, cold-rolled products, products with a color coating) and wire rod.
As the appeal stated, most of these products were delivered to the country in large volumes. It came mainly from China, Korea, Japan and the Russian Federation, which affected prices and demand in the domestic market.