India's finished steel imports have surged to a five-year high in the first two months of the fiscal year starting in April, according to provisional government data accessed by Reuters. The country, which remains a net importer of steel, saw imports reach 1.1 million metric tons between April and May, a 19.8% increase from the previous year.
India, the world's second-largest crude steel producer, has experienced strong steel demand fueled by robust growth in the construction and automotive sectors. This demand surge has made India a bright spot in the global steel market, attracting both domestic and international steel producers. Despite the rising imports, the Federal Ministry of Steel has resisted calls from local steel mills for government interventions and safeguard measures, citing strong domestic demand.
China has been a significant exporter of steel to India in recent months, alongside South Korea. Major Indian steel producers, including Tata Steel, have expressed concerns over the growing volume of Chinese steel imports. In contrast, India's finished steel consumption jumped 10.5% to a six-year high of 23 million tons in April-May, reflecting the buoyant demand for steel in one of the world's fastest-growing economies.
Rapid economic growth and increased infrastructure spending have turned India into a lucrative market for both Indian and global steelmakers, particularly as steel demand has slowed in Europe and the United States. During the previous fiscal year, which ended in March, India was a net importer of finished steel, importing 8.3 million metric tons, a 38.1% increase from the prior year.
Conversely, India's finished steel exports have declined to their lowest level in at least six years. Between April and May, overseas shipments of steel totaled 0.9 million tons, down 39.6% year-on-year. This decline in exports highlights the shifting dynamics of the global steel market and India's growing importance as a steel consumer.
