India increased steel imports from China to a historic high in April-October

India increased its steel imports from China to a historic high of 1.7 million tons in April-October 2024 (7 months of fiscal year 2024/2025), up 35.4% compared to the same period in 2023. This is evidenced by preliminary government data, according to Reuters.

China exported most of its stainless steel, hot-rolled coils, galvanized sheet, sheet and electrical steel to India during the period. In total, imports of rolled steel to India during this period reached a seven-year high of 5.7 million tons.

Other supplier countries include Japan and Vietnam, which also significantly increased their exports to India. In total, China, South Korea and Japan accounted for 79% of the country’s total steel imports.

Demand for steel in India remains high due to the country’s robust economy, growing infrastructure construction and urbanization. However, cheap Chinese imports pose serious challenges for local producers. Low prices for Chinese products, as well as falling domestic steel prices, are exacerbating the financial difficulties of many Indian companies.

The Indian Ministry of Steel has proposed to impose a 25% safeguard duty or a temporary tax for two years on flat steel products to limit the flow of cheap steel from China. The letter was sent to the Ministry of Commerce on November 27.

Despite the increase in imports, India’s consumption of finished steel also reached a seven-year high, indicating strong domestic demand. Meanwhile, Indian steel exports in April-October decreased by 29.3% y/y, with Italy becoming the main buyer and shipments to the UK increasing by almost 15% /y.

As GMK Center reported earlier, India became a net importer of rolled steel in FY2023/2024. Last year, the country imported 8.3 million tons of rolled products (+38.1% y/y), while exports amounted to 7.5 million tons (+11.5% y/y). Steel consumption during this period increased by 13.4% y/y – to 136 million tons, reflecting strong demand for products.