Cheap steel imports from China affect profitability of Indian steel companies

India's steel industry is facing a 58-95% decrease in productivity due to imports of cheaper rolled steel. However, the country continues its efforts to increase production capacity in line with its target of producing 300 million tons of steel annually by 2030. Still, investment cycle disruptions are jeopardising planned investments.

India, which has significantly increased its steel imports in recent years, became a net importer of steel in 2023/2024. China's exports of steel products to India reached a level of about one-third in the financial year 2023/2024. The Indian Steel Association (ISA) is worried about the diversion of Chinese imports through ASEAN countries, especially Vietnam. During April-August this year, India's flat product imports from China increased by 31.7% year-on-year to 1.1 million tons and total imports of flat products reached 3.7 million tons, the highest level in six years.