India’s finished steel imports from South Korea, China, and Japan have reached an all-time high [1] during the April-January period of the current fiscal year. According to provisional government data, these three countries accounted for 78% of India’s total finished steel imports, highlighting the growing reliance on foreign steel to meet domestic demand.
South Korea emerged as the largest exporter of finished steel to India, with shipments totaling 2.4 million metric tons, marking an 11.7% year-on-year increase. China followed closely, exporting 2.3 million metric tons, a 3.4% rise compared to the previous year. Japan, on the other hand, saw the most significant growth, with its finished steel exports to India surging by 88.6% to 1.8 million metric tons.
The surge in imports can be attributed to several factors, including competitive pricing, high-quality products, and the inability of domestic steel producers to meet the rising demand. Hot-rolled coils or strips were the most imported grades, while bars and rods led shipments in the non-flat steel products category.
Despite being the world’s second-largest crude steel producer, India has become a net importer of finished steel during this period. The country’s total finished steel imports rose by over 20% to 8.29 million metric tons, while exports plummeted to a seven-year low. Exports to Italy, India’s largest export destination, nearly halved, and shipments to Belgium, Nepal, and Spain also saw significant declines.
In response to the surge in imports, the Indian government launched an investigation in December to determine whether safeguard duties or temporary taxes are needed to curb the influx of foreign steel. Last month, India’s Steel Minister H.D. Kumaraswamy indicated that the government might impose a safeguard duty of 15% to 25% on steel imports.
The Indian Steel Association (ISA) has expressed concerns over the potential impact of additional tariffs on global trade and the domestic steel industry. ISA President Naveen Jindal warned that such measures could further disrupt global trade and exacerbate challenges for the steel sector.
As India grapples with balancing domestic production and imports, the steel industry remains a critical component of the nation’s economic landscape. The government’s decisions in the coming months will play a pivotal role in shaping the future of India’s steel sector.
Sources:
[1]India’s Finished Steel Imports from South Korea, China, and Japan Hit Record High https://www.msn.com/en-ae/money/companies/india-s-april-january-finished-steel-imports-from-s-korea-china-japan-hit-record-high/ar-AA1AcfRu#