India’s steel imports hit record high

India, the world’s second-largest crude steel producer, imported a total of 6.5 million tons of steel in the April-November period, an increase of 26.6% from the same period last year, according to provisional government data.

Countries such as China, Japan and South Korea, which provide affordable steel, accounted for 79% of the imports. Japan doubled its shipments to export 1.4 million tons of steel, while China’s shipments increased by 22.8% to 1.96 million tons.

Hot-rolled products top the list

While India’s top imported product group was hot-rolled coils, bars and rods stood out in the non-flat product category. Products such as stainless steel and electrical sheets also had a significant share.

Increasing pressure on local producers

Increasing imports have put pressure on local steel producers, especially small-scale ones. Some factories may be forced to scale back production or make layoffs, it has been reported. Following these developments, the Indian government has launched an investigation to consider the imposition of a safeguard duty of up to 25% to control the increase in imports.

Exports at an eight-year low

In the same period, India’s finished steel exports fell to an eight-year low. While Italy remains India’s largest export market, shipments to the country fell by 31.8%. In contrast, exports to the UK and Belgium increased by 16% and 6.9% respectively.

Protection measures on the agenda

According to SteelRadar, the Indian government has launched a safeguards investigation into imports of alloyed and unalloyed flat steel products. The investigation will examine imports of hot and cold rolled coils, metallic coated steel products and other steel products with specific HS codes.

Market sources predict that the investigation could provide support to local producers by reducing imports. However, it is stated that the implementation of the measures will take time and low demand continues to be the main problem in the sector. On the other hand, the expiration of the Bureau of Indian Standards certificates of some foreign manufacturers from November has caused a partial decrease in imports.