India’s finished steel imports from China reached an all-time high during the first seven months of the current financial year from April, according to provisional government data reviewed by Reuters, rattling hundreds of small Indian steel producers. China, the world’s biggest steel producer, shipped 1.7 million metric tons of finished steel to India during April-October, a 35.4% increase year-on-year, the data showed. This has exacerbated the deteriorating financial health of Indian steel producers struggling with cheap Chinese imports and falling domestic prices despite robust demand driven by rapid economic growth and rising infrastructure spending in the world’s fastest growing major economy. China, the world’s biggest steel producer, mostly shipped stainless steel, hot-rolled coils, galvanised sheets, plates and electrical sheets, among other grades during the period, the data showed.India’s overall finished steel imports surged to a seven-year high of 5.7 million metric tons during the April-October period. Finished steel imports from Japan and Vietnam more than doubled during the period, the data showed. 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 a letter seen by Reuters. “There is a looming threat of huge increase in cheap imports from China,” Sandeep Poundrik, the most senior civil servant at the Ministry of Steel said in a letter to his counterpart in the trade ministry. The letter was dated Nov. 27.The steel ministry did not respond to a Reuters email seeking comments.During April-October, hot-rolled coils were the largest imported grade, while bars and rods topped the imported grades in the non-flat product category, the data showed.India, the world’s second-biggest crude steel producer, became a net importer of the alloy in the fiscal year to March 31, 2024 and the trend has continued since.However, demand has been strong, with consumption of finished steel reaching a seven-year high during April-October.India’s finished steel exports fell 29.3% during April-October, and Italy emerged as the biggest buyer of Indian steel.But exports to Britain jumped nearly 15% between April and October, the data showed. Nominations for ET MSME Awards are now open. The last day to apply is December 15, 2024. Click here to submit your entry for any one or more of the 22 categories and stand a chance to win a prestigious award.
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