The latest data shows that India’s imports of steel from China hit a record high in the first seven months of the current fiscal year (from April to March next year). This data has not only surprised hundreds of small steel producers in India but has also prompted the Indian steel department to plan imposing a 25% protective tariff or a two-year temporary tax on flat-steel products.
In the period from April to October of this year, India’s import of finished steel reached 5.7 million metric tons, marking a seven-year high. Among them, China accounted for a large portion, exporting 1.7 million metric tons of steel to India during this period, a 35.4% year-on-year increase.
Data shows that China, South Korea, and Japan collectively occupied 79% of India’s total imported finished steel from April to October.
Furthermore, imports of finished steel from Japan and Vietnam more than doubled during this period.
Despite India’s rapid economic growth in recent years, increased infrastructure spending, and strong domestic demand expected to drive local steel production, the Indian steel industry faces competitive pressure and financial difficulties due to cheap steel imports from China and falling domestic prices.
According to a letter seen by Reuters, the Indian steel department has requested a 25% protective tariff on flat-steel products or a two-year temporary tax to combat cheap Chinese steel imports.
In a letter to the trade department, Sandeep Poundrik, a senior official in the Indian steel department, stated, “Cheap Chinese steel imports have significantly increased in the Indian market, posing a serious threat to local industries.” The date of the letter is November 27th.
Data shows that China exported a large amount of various steel products to India from April to October, including stainless steel, hot-rolled coils, galvanized sheets, steel plates, and electrical steel sheets. Among them, hot-rolled coils were the most imported steel product, and in the non-flat steel category, steel rods and bars were the most imported products.
Data shows that India’s export of finished steel decreased by 29.3% from April to October, with Italy becoming the largest buyer of Indian steel. However, exports to the UK surged by nearly 15% during the same period.