India’s finished steel imports from China soared to an all-time high in the first seven months of the current financial year (April-October 2024), according to the data reviewed by Reuters, leaving hundreds of small Indian steel producers struggling with heightened competition from the world’s largest steel producer.
China shipped 1.7 million tons of finished steel to India during the 7 months, where a 35.4% increase year-on-year has been recorded.
The financial health of Indian steel producers has been deteriorating as they struggle with cheap Chinese imports and reduced domestic prices despite vigorous demand due to rapid economic growth and rising infrastructure spending in India’s economy.
Reuters reported that the data showed that China mostly shipped stainless steel, Hot-rolled coils, galvanized sheets, plates, and electrical sheets, among other grades.
It also showed that finished steel imports from Japan and Vietnam more than doubled during the period. China, South Korea, and Japan accounted for 79% of total finished steel imports between April and October.
India’s steel ministry has sought a 25% safeguard duty or a temporary tax for two years on flat-steel products to curb cheap Chinese imports, according to statements seen by Reuters.