Indian steelmakers are grappling with a surge of cheap steel imports, which has turned India into a net steel importer in the first quarter of FY25 (April to June). During this period, imports exceeded exports by approximately 0.6 million tons (MT). Weak global demand and competition from China have led to a consistent decline in India’s finished steel exports, which fell 38% year-on-year to 1.3 MT, while imports rose 30% to 1.9 MT.
Despite a sequential decline in June imports to 0.55 MT, Indian steel companies remain focused on the influx of Chinese steel. This trend is expected to persist, with projections indicating that India’s steel manufacturing will grow nearly 6% year-on-year, reaching 152 MT by March 2025. Concurrently, direct reduced iron production capacity could reach 68 MT, driven by secondary plants.
Amid these challenges, Indian steel leaders have urged the government to take action against the surge in Chinese imports, proposing measures such as an 8-12% cess on all steel imports. The influx of discounted Chinese steel, sometimes sold below production costs, continues to strain the domestic market, prompting calls for protective measures.
Additionally, there is a push to establish India’s first eco-friendly steel-making project using a 100% hydrogen-based DRI production method, partially supported by the Indian Steel Ministry. This initiative aims to align with global decarbonization priorities while bolstering domestic steel production capabilities.
As the industry navigates these complexities, the balance between managing import pressures and expanding domestic production remains critical for the future of Indian steel manufacturing.
