Indian steelmakers are concerned about the rise in rolled steel imports from China

Indian steelmakers are concerned about the influx of cheap Chinese imports—steel shipments from China to India more than doubled in April, according to Reuters.

According to preliminary data from the Indian government, China shipped approximately 232,000 tons of rolled steel to the country in April. This occurred despite the fact that India imposed import duties on certain types of steel products for a three-year period last December, which had somewhat slowed these shipments.

Hot-rolled coils dominated the structure of Chinese exports to India, followed by stainless steel products. While the former are subject to import tariffs, the latter are exempt from them.

The influx of inexpensive stainless steel from China poses a challenge to the domestic industry, Tarun Khulbe, CEO of Jindal Stainless, told the agency. He added that some of the imports are routed through countries such as Vietnam, a member of ASEAN, with which India has a free trade agreement. In April, Vietnam became one of the top five exporters of rolled steel to India.

“Such imports distort fair market practices, affect investment in the industry, and undermine the long-term competitiveness of Indian production,” Khulbe believes.

Chinese steel attracts buyers with its price; for example, hot-rolled steel is $11–37 per ton cheaper than local products. According to steelmakers, some of the hot-rolled coils that arrived in India were problematic cargo redirected from the Middle East due to the war with Iran.

According to forecasts by the consulting firm BigMint, imports from China to India will grow even further in May.

As a reminder, India imported 0.7 million tons of rolled steel in April, a 30.8% increase year-on-year. The largest suppliers were China, South Korea, Japan, Vietnam, and Russia. Consumption of steel products for the period reached approximately 13 million tons, an 8.2% increase year-on-year.