India has witnessed a remarkable surge in steel imports during the initial nine months of the fiscal year ending in March, reaching a five-year high and transforming the nation into a net importer of finished steel, as per provisional government data disclosed on Tuesday and reported by Reuters.
The upswing in economic activities and extensive infrastructure development has positioned India as a key market for both local and global steel manufacturers. This stands in stark contrast to Europe and the United States, where steel demand is experiencing a slowdown.
According to the data, India imported 5.6 million metric tons of finished steel between April and December, marking a substantial 26.4% increase compared to the same period the previous year.
During this period, steel consumption in India, the world’s second-largest crude steel producer, skyrocketed by 14.8%, reaching a six-year high of 100 million metric tons. This surge in demand reflects the robust appetite for the alloy in one of the world’s fastest-growing economies.
Anticipating economic growth outpacing the global average in the next fiscal year, India expects its steel demand to remain robust. However, this surge in imports has raised concerns among Indian steel mills, prompting calls for government interventions and safeguard measures. Despite these appeals, the federal Ministry of Steel has refrained from imposing curbs, emphasizing the robust domestic demand.
T.V. Narendran, the CEO of Tata Steel, India’s second-largest producer, expressed concern, stating, “Rising imports are a concern and should be tracked closely as dumping of steel in India can hurt the profitability and hence the investment plans of the steel industry.”
During the April-December period, South Korea emerged as the leading exporter of finished steel to India, shipping 1.77 million metric tons, up by 4.4% from the corresponding period the previous year, reaching a four-year high. China, the world’s top steel producer, closely followed, with its shipments of finished steel to India hitting a six-year high at 1.75 million metric tons.
In contrast, India’s finished steel exports during the same period were 4.7 million metric tons, the lowest in at least six years, underscoring subdued overseas demand. Despite the surge in imports, India’s crude steel output stood at 106.1 million metric tons, marking a significant 13.9% increase from the previous year.