India's steel imports from China reached 0.6 million tons, up from 0.38 million tons in the same period last fiscal year, while February alone saw a 24% increase compared to January. India's total steel imports increased from 5.4 million tons in FY23 to 7.76 million tons in FY24, while imports from China rose from 0.67 million tons to 1.72 million tons.
The increase in imports from China is attributed to its surplus production, which is almost equal to India's steel output. In January-March 2024, cumulative steel imports from China rose 28 percent year-on-year to 26 million tons and are expected to continue in the second quarter.
In India, rising imports are affecting local steel prices, which fell from ₹60,300 (USD 1,895) per tonne in March 2023 to ₹52,800 (USD 1,664) per tonne in March 2024, but recovered to ₹54,200 (USD 1,703) per tonne in May.
ArcelorMittal Nippon Steel India reported five straight quarters of low EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), mainly citing record imports and disruptive pricing pressure. The Indian Steel Association stressed the urgency of trade remedial measures to address dumping and subsidized pricing. The sector needs support to spur growth amid the need for billions of dollars of long-term investment.
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