Steel imports are expected to continue challenging domestic manufacturers in India, with Formosa Ha Tinh, a Vietnamese steel producer recently approved by the Bureau of Indian Standards (BIS), starting to ship its commodity to the South Asian nation. Rising imports from Southeast Asia have already been a concern for Indian steel manufacturers, and experts believe that this development will further pressure the industry’s margins.
Data from BigMint reveals that a consignment of hot-rolled coil (HRC) ranging between 35,000 and 40,000 tonnes was booked last week from Vietnam to India at $590-595 per tonne on a cost and freight (CFR) basis. Industry executives note that this cost is approximately ₹2,000-3,000 per tonne lower than domestic rates. The consignment is exclusively from Formosa Ha Tinh Steel Corporation.
Currently, domestic prices for HRC range between ₹54,000-55,000 per tonne, whereas the imported product, after including Mumbai port charges, stands at ₹51,700 per tonne. This price disparity has prompted Indian manufacturers to raise concerns over the increasing influx of cheap steel imports.
The availability of cheaper imports forces Indian steel mills to reduce their prices to maintain demand for their products. Indian steelmakers claim that many of these imports are sold at "predatory prices" and amount to "dumping." They allege that overseas mills are offloading excess production at a minimal profit or even a loss, driven by muted market demand in major markets, which exacerbates the pricing pressure on domestic producers.
