India's imports of finished steel hit a peak of 5.7 million metric tons in April-October, the highest in seven years. India, the second largest producer of crude steel worldwide, transitioned into a net importer of the metal in the fiscal year ending on March 31, 2024, and this pattern has been ongoing, with imports increasing steadily.
"(The) steel industry in 2024/25 by now has lost margins by 68% to 91% and are under severe stress, leading to uncertainty of funding from investors impacting the capacity expansion," the Indian Steel Association said.
India's JSW Steel Ltd, the country's biggest steelmaker by capacity, last reported a third straight quarterly drop in profits, as rising imports dragged down domestic prices. After going through the presentation, the DGTR asked the Indian Steel Association to submit a formal petition to help initiate an investigation to determine whether cheap steel imports have hurt Indian steelmakers.
The imposition of a safeguard duty will depend on the outcome of the DGTR investigation. Cheap imports are eating into the market share of domestic steelmakers, the Indian Steel Association said in its presentation. It said 17% of the hot-rolled segment, 20% of coated steel, and 19% of the plates segment have been displaced by cheap Chinese, Japanese and South Korean steel.
China, Japan, South Korea and Vietnam are selling their surplus stocks to India to cash in on strong demand for steel in the south Asian country.
