India in Steel Import Frenzy: China and Japan Dominate

India recorded a record increase in steel imports from China during the first eight months of the fiscal year until March 2025, according to preliminary government data. Domestic steelmakers are alarmed by the cheap imports from China, which increase cost pressures. India's steel imports rose to an eight-year high, making the country, the world's second-largest crude steel producer, a net importer during this period. A total of 6.5 million tons of finished steel were imported, an increase of 26.6% year-on-year. China delivered 1.96 million tons of steel to India from April to November, reflecting an increase of 22.8% compared to the previous year. Beijing's exports mainly included stainless steel, hot rolled formats, plates, electrical sheets as well as galvanized and corrugated sheets, pipes, rods, and bars. Japan's steel imports to India also rose to at least a six-year high, more than doubling to 1.4 million tons. China, Japan, and South Korea account for 79% of India's total steel imports. To address the import surge, the Indian government has launched an investigation to consider imposing a safeguard duty of up to 25%. The influx of cheap Chinese steel is forcing smaller Indian mills to cut production and consider job cuts. The demand for steel in India remains robust due to economic momentum and new infrastructure projects. Nevertheless, steel imports fell to an eight-year low. Italy, the largest export market for Indian steel, recorded a 31.8% drop in imports. In contrast, exports to the United Kingdom and Belgium increased by 16% and 6.9%, respectively.