India Unlikely to Add New Curbs on Cheap Steel Imports for Now

Post by : Saif

India’s steel ministry is unlikely to introduce additional measures against cheap steel imports in the near term, despite calls from domestic producers for stronger protection, according to a government source familiar with the matter.

India, the world’s second-largest crude steel producer, became a net importer of finished steel during the April-August period. Imports reached 3.5 million metric tons, an increase of 29.5% from the same period a year earlier.

China was the largest supplier, accounting for 31.8% of India’s finished steel imports during the period.

Domestic Steelmakers Seek Stronger Protection

Indian steel producers have raised concerns about increasing imports and their potential impact on domestic prices and profit margins.

A steel industry analyst said one steel mill had petitioned the government to increase the existing safeguard duty above 20%, compared with the current rate of 11.5%.

However, the government source said there was currently no plan to increase the duty because domestic steel prices were already high.

The source spoke anonymously because India’s import policy discussions are confidential.

India Already Has Measures on Steel Imports

India launched an anti-dumping investigation in June into hot-rolled steel imports from China, Japan and Russia.

New Delhi had also introduced safeguard duties in December 2025 on certain grades of steel for three years. The measures were designed to protect Indian producers from a surge of cheaper imported steel.

Despite these steps, imports have continued to rise.

India’s steel secretary said in September that increasing imports remained a challenge for the domestic industry.

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Rising Steel Prices Influence Government Decision

The government’s decision not to introduce additional restrictions comes as domestic steel prices have increased.

Steel mills have raised prices in recent weeks as the cost of coking coal, an important raw material used in steel production, has increased.

Demand for steel has also strengthened following the monsoon season. Infrastructure projects and the automobile sector are among the areas supporting the recovery in demand.

The improvement in domestic consumption could reduce some pressure on steel producers, although cheaper imports remain a concern.

Strong Automobile Demand Supports Steel Market

India’s automobile sector has recently recorded strong growth.

Vehicle sales increased 31.82% year-on-year in September, supported by higher demand for passenger vehicles and two-wheelers, according to an industry body.

Stronger automobile production and infrastructure activity can increase demand for steel and provide support to domestic mills.

However, industry analysts warn that a renewed increase in imports could put pressure on producers’ margins if imported steel becomes more competitive.

China Remains India’s Biggest Steel Import Source

China has emerged as the largest exporter of finished steel to India, accounting for nearly one-third of imports during the first five months of the financial period.

The increase has raised concerns among Indian steelmakers, particularly as Chinese steel remains a major factor in global steel markets.

India is therefore facing a difficult balance between protecting domestic producers and keeping steel prices under control for industries that depend heavily on the material.

For now, the government appears reluctant to introduce another import restriction while domestic steel prices remain elevated.

Outlook for India’s Steel Industry

India’s steel market is likely to remain closely watched as imports, domestic demand and raw material costs influence prices.

Higher infrastructure and automobile demand could support Indian producers, but a further rise in imports could create renewed pressure on their margins.

The government’s decision to hold off on additional restrictions suggests that New Delhi is currently prioritising stable steel prices while monitoring the impact of existing trade measures.

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