India remains a net steel importer, with China as its top supplier, importing 2.69 million metric tons and exporting 1.57 million tons this fiscal year. Despite strong domestic demand, steel prices have dropped to a three-year low due to rising imports and sluggish exports.
India stood out as the only top five steel-producing nation to experience growth in April. Steel production in India increased by 3.6%, totaling 49.5 million tonnes from January to April, while China, Japan, and the United States saw declines in their production levels. To support this upward trend, the Indian government has introduced measures to enhance self-reliance in the steel industry. The sector is projected to surpass 300 million tonnes of annual production by 2030-31, with crude steel output expected to reach 255 million tonnes, supported by a 90% conversion ratio from raw to finished steel. By that time, per capita steel consumption is anticipated to rise to 160 kg.
In the first four months of the current fiscal year, India continued as a net importer of steel, with China leading as its top supplier, according to provisional government data reviewed by Reuters.
Between April and July, India imported 2.69 million metric tons of steel while exporting 1.57 million tons. Despite being the world’s second-largest producer of crude steel, India has maintained its status as a net importer for the fiscal year ending March 31, 2024, with Chinese steel imports on the rise.
Iron & Steel trade summary for calendar year 2024
Source: Ministry of Commerce & Industry (US$ million)
India’s steel demand remains robust due to strong needs from the construction and automotive sectors. As the world’s second-largest crude steel producer, the country experiences vigorous domestic demand. With the trend of economic growth exceeding global rates, this strong demand for steel is expected to persist.
Meanwhile, china’s aggressive export approach has significantly affected India’s steel exports. With its steel industry grappling with overcapacity, China has intensified its push into international markets, including those crucial to India, by offering competitively priced steel. This strategy has put substantial pressure on India’s steel export performance.
There is a worsened trade balance with China as it topped the list of steel exporters to India during this period, sending approximately 807,000 tons. Japan and South Korea followed as key suppliers.
Indian steel giants like JSW Steel and Tata Steel have expressed concerns over the surge in imports, leading the government to launch an anti-dumping investigation into certain steel products from Vietnam.
Steel prices in India have fallen to their lowest point in over three years, a decline attributed to increased imports and sluggish exports, according to BigMint, a commodities consultancy.
India’s steel production between April and July included 48.8 million metric tons of crude steel and 47 million tons of finished steel. During this timeframe, Italy emerged as the top buyer of Indian steel, with Belgium and the United Kingdom also among the leading importers.
Overall, India’s shift from being a net steel exporter to a net importer introduces both challenges and opportunities. The country must effectively manage the influx of cheaper imported steel while boosting domestic production and preserving export competitiveness. Strategic adjustments will be crucial for policymakers and industry stakeholders to navigate these changes, sustain growth, and enhance India’s position in the global steel market.
