The license renewal reflects the Indian government's commitment to preventing imports of poor-quality steel from entering the domestic market.
India's Ministry of Steel issued a circular on October 26 stating that all steel importers without a BIS license must mandatorily apply and request clarification from the Ministry of Steel through the QCO portal for each shipment. As per the circular, QCO requires all steel products imported into India to have a BIS license/certificate and be marked with ISI and BIS license numbers along with a "factory test certificate".
India's steel imports surged in FY2024, drawing attention to its negative impact on domestic sales. Data showed a strong 34% increase in imports to 9.33 million tons from 6.94 million tons in the previous fiscal year. Import levels reached a seven-year high in 2023. In fiscal 2024, South Korea, China, and Japan were the top three exporters.
South Korea led imports with an 11% volume increase to 2.75 million tons from 2.49 million tons the previous year. China's imports jumped 60% from 1.55 million tons to 2.50 million tons. Japan's imports rose 42% year-on-year from 0.83 million tons to 1.18 million tons, displacing Vietnam, which was third last year.
Increased domestic demand and competitive offers from China and Vietnam led to a surge in imports last fiscal year. However, the requirement for BIS licenses led to a significant drop in India's steel imports from 1.28 million tons in November 2023 to 0.52 million tons in March 2024.
The certificate is projected to be valid until December 2024, according to market sources.
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