According to provisional government data, India’s finished steel imports from China hit a record high in the first seven months of the current financial year, raising concerns among small Indian steel producers.

India imported 1.7 million metric tons of finished steel from China during April-October, a 35.4% increase compared to last year.

This import surge hurts small Indian steel producers, who face cheap Chinese imports and falling domestic prices despite strong demand.

China mainly exported stainless steel, hot-rolled coils, galvanized sheets, plates, and electrical sheets to India.

Overall, finished steel imports to India reached a seven-year high of 5.7 million metric tons during this period.

Finished steel imports from Japan and Vietnam doubled, with China, South Korea, and Japan making up 79% of total imports.

India’s steel ministry has proposed a 25% safeguard duty on flat-steel products to limit cheap Chinese imports.

Sandeep Poundrik, India’s senior steel ministry official, warned of a potential rise in cheap Chinese imports in a letter to the trade ministry dated November 27.

The steel ministry did not respond to a Reuters inquiry.

Hot-rolled coils were the largest imported steel product during April-October, while bars and rods topped the non-flat product category.

India became a net importer of steel in the fiscal year to March 31, 2024, and this trend has continued. Despite strong demand, India’s finished steel consumption reached a seven-year high during April-October.

India’s finished steel exports fell by 29.3%, with Italy becoming the largest buyer. Exports to Britain increased by nearly 15% between April and October.

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