India imposed a 12% safeguard duty on steel imports from China and Vietnam to protect domestic producers, resulting in a 21% drop in imports compared to March. Despite this, India remained a net steel importer in April, with imports at 0.46 million tonnes (mt) surpassing exports of 0.38 mt. Finished steel imports and exports also declined year-on-year, reflecting ongoing weakness in the global steel market.
Non-alloy steel imports were the most affected, plunging 28% year-on-year and 2.4% sequentially. Duty-free alloy and stainless steel imports remained flat year-on-year but declined 9% from the previous month. Since January, shipments from countries like China have consistently decreased, triggered by speculation around protective duties. Meanwhile, China continues to dominate global supply with exports averaging 10 mt per month to markets such as West Asia and Africa.
The drop in exports is a concern for Indian steelmakers, especially as global demand remains sluggish. Tata Steel’s MD highlighted during a recent call that prices in India may increase in Q1 due to falling imports. However, unless export demand revives, domestic producers will face challenges despite lower import competition. Balancing internal demand and external competitiveness remains a key task.