The Ministry of Steel reported that India’s overall steel import reached 484,000 tons, representing a 5.9pct month-on-month increase and a 7.6pct increase compared to June 2022.
In June 2022, China accounted for 26.1pct of India’s steel imports. However, in June 2023, China’s import share rose to 37.1pct.
Traders near port cities in the eastern state of Odisha and the western state of Gujarat find it more cost-effective to import steel from China than to invest in local freight, according to a senior executive at a major Indian steelmaker.
Between April and May, Indian imports of Chinese steel products, including construction materials like plates and pipes, reached a three-year high. Cold-rolled steel products accounted for around 35pct of the steel imports from China during this period, followed by pipes.
The majority (68pct) of Chinese cold-rolled steel cargoes were received at Mundra Port, which is owned and operated by Gujarat Adani Port.
Additionally, stainless steel imports from China in the same period reached a three-year high at 107,000 tons.
India, the world’s second-biggest crude steel producer, imported 228,000 tons of steel from China during the first two months of the fiscal year that began in April – the highest in six years.
This development is significant as India has set an ambitious target to increase its steel production capacity to 300 mln tons, with Indian players aiming for a substantial share in global steel markets.
On the other hand, India’s export of finished steel declined to 502,000 tons in June, posting a decrease of 27.6pct compared to May 2023 and 21.3pct compared to June 2022.
The data also indicated that the share of the UK, Mexico, Russia, Italy, Portugal, and Nepal in India’s steel export increased in June 2023.
