India's Steel Imports from China, Japan, South Korea Hit Record 78%, Exports at 7 Year Low

India's finished steel imports from South Korea, China and Japan reached a record high between April and January of fiscal year 2025, according to provisional government data assessed by Reuters on Tuesday. Imports from these three countries contributed 78% of India's total finished steel imports.

Of these, South Korea was the largest exporter during this period, with 2.4 million tonnes (MT) of finished steel imports. This marks a 11.7% year-on-year growth.

Finished steel shipments from China also witnessed a 3.4% YoY surge at 2.3 MT followed by Japan at 1.8 MT. At 88.6%, imports from Japan witnessed the highest YoY growth rate.

Notably, India's exports of the alloy shrunk to an nearly seven-year low during the same period. Exports to Italy, the biggest export destination of India, nearly halved during the first 10 months of FY25.

In December, India initiated an investigation to assess the need for a safeguard duty or temporary tax to curb the surge in steel imports.

India Remains Net Importer

Despite being the world's second-biggest crude steel producer, during the first 10 months of FY25, India remained a net importer. Its inbound shipments rose over 20% to 8.29 MT in the same period.

On the other hand, exports have declined by 28.9% to 3.994 MT during the mentioned period compared to 5.619 MT in April-January period of preceding fiscal year.

Last year in December, steel secretary Sandeep Poundrik informed that India needs to add 100 MT of steel making capacity by 2030 on priority to avoid becoming dependent on imports, according to PTI.

He also pointed out that the domestic industry is highly affected by the slumped steel demand and over capacity globally.

Meanwhile, Industry body Indian Steel Association (ISA) also expressed deep concern over the recent announcement of the US administration to impose 25% additional tariffs on steel imports. ISA President Naveen Jindal said that the move can further disrupt global trade and intensify challenges for the steel industry.