Indian steelmakers grapple with resurgence of cheap Chinese imports

NEW DELHI: China’s finished steel exports to India more than doubled in April to the highest in at least two years, sparking worries among the latter’s steelmakers that despite the imposition of import tariffs they will be swamped by cheaply priced products.

Provisional Indian government data reviewed by Reuters showed China shipped in around 232,000 metric tons of finished steel in April and emerged as the top exporter of such steel to the South Asian nation.

That 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 that had managed to slow imports from China.

Imports of finished steel products into India from China were primarily hot-rolled coils, followed by stainless steel products, the data showed.

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While hot-rolled coils fall under import tariffs, stainless steel products are exempt.

The influx of low-priced stainless steel from China is a challenge for the domestic industry, Tarun Khulbe, chief executive at Jindal Stainless, told Reuters. He added that 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.

“Such imports are distorting fair market practices, impacting investments into the industry and affecting long-term manufacturing competitiveness in India,” Khulbe said.

Buyers are lured by Chinese steel that is cheaper anywhere between $11 and $37 per ton of hot-rolled steel compared with local prices, an executive at a large private steel firm said.

Some of the hot-rolled coils that have come into India were distressed cargo that could not reach the Middle East because of the Iran war, a senior executive at another large steel firm said.

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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.

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.

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, executives said.

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