Recently, India's steel and commercial sectors have opened discussions about the surge in imports of steel products, with a particular focus on products from China. India reportedly became a net importer of steel in the 2023/2024 financial year, a pattern that continued in April and May this year, with the supply of rolled steel products from abroad reaching its highest level in five years.
India imported 1.1 million tonnes of rolled steel between April and May, up 19.8% year-on-year, the data showed. The steel sector has informed the commercial sector of the increase in imports, and the relevant industries are requesting an investigation. India is keeping a close eye on cheap steel imports from China, which has been India's largest steel exporter in recent months.
Steel producers have expressed concern about the surge in imports and have repeatedly called on the government to intervene and tighten tariffs. However, the steel sector rejected the demands, citing strong domestic demand.
According to Ranjan Dhar, Director and Vice President of Sales & Marketing at ArcelorMittal Nippon Steel India (AMNS), the world is not consuming more steel, with poor demand in China and excess inventories leading to a global oversupply situation, with the impact not even limited to India. He also noted that cheap Chinese steel is also flowing into India through other countries.
At present, India's steel industry is facing serious challenges to protect the development of the domestic industry and market demand, and the industry has asked the government to reinstate the basic steel tariff to 12.5% to cope with the competitive pressure caused by Chinese steel imports.
In summary, India's steel industry is facing severe external challenges, and the government and industry authorities need to work together to develop effective measures to ensure the sustainable development of India's steel industry.