According to provisional government data reviewed by Reuters on Thursday, India’s finished steel imports dropped by 11.3% year-on-year in April, reaching 0.5 million metric tons, as shipments from China and Japan declined.
To counter a flood of low-cost steel imports, primarily from China, India imposed a 12% provisional safeguard duty on select steel imports in April. The country ranks as the globe’s second-biggest crude steel producer. This protective measure appears to have had an impact, with April data showing Chinese finished steel exports to India dropping 26.5% year-on-year to just 100,000 metric tons. Japanese steel shipments saw an even steeper decline, plummeting 60% to approximately 85,600 metric tons compared to the previous year.
“China has definitely gone down as far as imports are concerned,” said Nitin Kabra, sales and marketing director at Maharashtra-based, Bhagyalaxmi Rolling Mill Pvt Ltd.
China’s crude steel production in April fell 7% compared to March, contrasting with analysts’ predictions of an increase despite strong profitability and healthy export demand. Nevertheless, output levels remained relatively elevated. However, data showed South Korea as the biggest exporter of finished steel to India in April, with imports reaching 0.15 million metric tons, up 2.4% on year.
The government report noted that hot-rolled coil prices in India “inched up” in April following the introduction of a provisional tariff.
Based on available figures, Business Standard noted an abrupt increase in finished steel shipments from France and Germany during April. Finished steel imports from Germany rose more than five times to 30,600 metric tons, while those from France jumped 10 times to 30,300 metric tons. India imported mostly plates from France and Germany, the data showed. Steel plates serve essential functions in three core areas: structural construction, heavy industrial machinery, and transportation solutions. New Delhi remained a net importer of steel during April. However, finished steel exports in April fell to 0.4 million metric tons, down 25.7% from the same period a year ago.
India’s finished steel production reached 12.4 million metric tons in April, while crude steel output was at 12.9 million metric tons. The data also says that while Europe remains a major market for Indian steel, shipments to Belgium declined 6% year-on-year in April, and finished steel exports to Italy plummeted 60.4%.