Indian Steel Industry Faces Resurgence of Inexpensive Chinese Imports

China's Finished Steel Exports to India Surge in April

China's finished steel exports to India more than doubled in April to the highest in at least two years, sparking concerns among Indian steelmakers that cheaply priced products from China will flood the market despite import tariffs.

According to provisional government data reviewed by Reuters, China shipped around 232,000 metric tons of finished steel to India in April, emerging as the top exporter of such steel to the South Asian nation. This is despite India, the world's second-biggest crude steel producer, imposing import tariffs in December on some grades for a period of three years.

The imports of finished steel products into India from China were primarily hot-rolled coils, followed by stainless steel products, the data showed. While hot-rolled coils fall under import tariffs, stainless steel products are exempt. This has led to an influx of low-priced stainless steel from China, posing a challenge for the domestic industry.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Tarun Khulbe, chief executive at Jindal Stainless, a leading Indian steelmaker, expressed concerns that the imports are distorting fair market practices, impacting investments into the industry, and affecting long-term manufacturing competitiveness in India. Some of the imports were being routed through countries such as Vietnam, a part of ASEAN with which India has a free trade agreement.

Vietnam was among the top five exporters of finished steel to India in April, with shipments rising more than four times to 59,000 tons, the data showed.

Buyers are lured by Chinese steel that is cheaper anywhere between $11 and $37 per ton of hot-rolled steel compared with local prices. This has been attributed to distressed cargo that could not reach the Middle East due to the Iran war.

Imports from China are further projected to rise in May, according to commodities consultancy BigMint. India turned a net importer in April, in a sharp contrast with previous months when shipments had slowed due to the tariffs.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

In the year 2025/26, China's steel exports to India fell 39.4% to 1.5 million tons from a year earlier, and India was a net exporter. However, demand for steel in India has been rising from infrastructure and automotive sectors as one of the world's fastest-growing major economies expands, contributing to higher imports.

Finished steel consumption reached 13 million tons in April, up 8.2% on-year.

Note: The table provides a comparison of China's finished steel exports to India and India's net import/export position in different months and years.