A 12 per cent safeguard duty on steel from China and Vietnam reduced India’s imports by 21 per cent sequentially, yet the country remained a net steel importer in April, the first month of FY26. According to a Steel Ministry report accessed by businessline, imports of the alloy reached 0.46 million tonnes (mt), outstripping exports of 0.38 mt by 0.08 mt.
The duty imposed to shield domestic producers by increasing costs for Chinese and Vietnamese steel drove imports down from 0.58 mt in March, while exports fell 17 per cent from 0.46 mt.
On a year-on-year (y-o-y) basis, finished steel imports dropped 21 per cent to 0.59 mt, and exports slumped 27 per cent to 0.5 mt. Finished steel includes non-alloyed, alloyed, and stainless steel offerings.
Import trends
Non-alloyed steel imports, hit hardest by the duty, saw a 28 per cent decline y-o-y and a 24 per cent drop sequentially for April to 0.31 MT. Alloyed and stainless steel imports, exempt from the duty, were at 0.15 mt, remained flat y-o-y and down 9 per cent sequentially.
Since January, when talks of a safeguard duty intensified, shipments coming in from China and some other countries have steadily declined — from 0.86 mt in January to 0.6 mt in February (down 30 per cent) and 0.58 mt in March (down 5 per cent).
Yet, global demand woes, exacerbated by China’s aggressive exports averaging 10 mt in March and April to markets like West Asia and Africa, have stifled India’s export recovery.
On the other hand, export of the metal was at 0.33 mt, down 28 per cent y-o-y and down 19 per cent sequentially. Alloy and stainless steel exports were at 0.05 MT, flat on a y-o-y and sequential basis.
“So on the positive side, imports are down. The concern, exports markets are still depressed,” an official said requesting anonymity.
During the recent post result investor call, Tata Steel MD and CEO said, average monthly export by China was around 10 MT in March and April, which was on the higher side. In India, he was expecting prices to increase by ₹3,000 per tonne in Q1 (April – June) with imports coming down in the last couple of months
“We don’t see imports flooding in just yet. If we again see a flood of Chinese imports we will certainly go back to the Government and see what can be done,” he said.Top of Form
