India’s import of finished steel has undergone notable fluctuations between 2019 and 2024. These variations can be attributed to several factors, including domestic production capacity, trade policies, global economic conditions, and shifts in demand from various industries. Steel is a critical material for sectors like construction, automotive, and infrastructure, making India one of the largest consumers of imported steel in the world. Over the past five years, India’s steel import figures have demonstrated changing patterns, with certain regions experiencing rising exports to India, while others have seen declines.
One of the largest suppliers of finished steel to India has been China, whose steel exports to India have grown substantially from 833,000 metric tons in 2021-22 to a remarkable 2,687,000 metric tons in 2023-24. This significant increase in Chinese steel imports is primarily driven by India’s robust demand for high-quality steel used in infrastructure development, automotive manufacturing, and other industrial applications. Despite India’s strong domestic steel production, the high demand for specialized and high-grade steel products has led to an increase in imports from China, especially in the wake of disruptions in global supply chains.
On the other hand, Japan has also been a key player in India’s steel imports, though its export figures have fluctuated. In 2023-24, Japan exported 1,274,000 metric tons of steel to India, compared to 841,000 metric tons in 2022-23. Japan has historically been a source of high-quality steel, particularly used in automotive and heavy industries, which continues to see strong demand in India. The increasing trend in imports from Japan reflects the growth of India’s manufacturing sector, particularly in automobiles and machinery.
India’s import figures also reflect the country’s trade policy adjustments. In 2022-23, India imposed certain tariffs and safeguard duties on steel imports to encourage domestic production and reduce dependency on foreign suppliers. This is reflected in the relatively lower imports from certain countries such as Russia, whose exports to India dropped sharply from 313,000 metric tons in 2022-23 to 53,000 metric tons in 2023-24. Similarly, South Korea, which has been one of the largest suppliers of finished steel to India, experienced a slight reduction in imports, from 2,228,000 metric tons in 2022-23 to 2,670,000 metric tons in 2023-24. These fluctuations can be attributed to global steel market shifts and India’s evolving trade policies.
Brazil and Italy are also significant contributors to India’s steel imports. However, both countries have seen declines in their exports to India over the last few years. Brazil’s steel exports dropped from 23,000 metric tons in 2019-20 to just 1,000 metric tons in 2023-24, signaling that India has increasingly relied on domestic production to meet its steel demands. Similarly, Italy has seen its export figures decrease from 81,000 metric tons in 2019-20 to 24,000 metric tons in 2023-24.
Southeast Asian nations like Vietnam and Indonesia have shown a mix of performance in their steel exports to India. Vietnam, in particular, has seen significant increases in steel exports to India, from 86,000 metric tons in 2019-20 to 737,000 metric tons in 2023-24. This sharp increase reflects the growing demand for steel in India’s booming construction and infrastructure sectors. Additionally, Vietnam’s competitive pricing and proximity to India have made it a key supplier of steel products in recent years.
Indonesia, another major exporter of steel to India, witnessed a reduction in exports, with 94,000 metric tons in 2023-24 compared to 464,000 metric tons in 2019-20. This decline can be attributed to factors such as reduced steel production or changes in demand from the Indian market. Nonetheless, Indonesia remains an important player in the regional steel trade.
European suppliers like Germany and France have also contributed significantly to India’s finished steel imports, though their share has varied over the years. In 2023-24, Germany’s exports stood at 80,000 metric tons, down from 112,000 metric tons in 2022-23. Similarly, France saw a substantial drop, from 77,000 metric tons in 2022-23 to just 15,000 metric tons in 2023-24. This shift could be attributed to the increased focus on local steel production in India, as well as shifts in the demand for specific steel grades.
Middle Eastern countries, particularly UAE and Saudi Arabia, also play a role in India’s steel import market. In 2023-24, UAE exported 52,000 metric tons of steel to India, a sharp rise from 12,000 metric tons in 2022-23, while Saudi Arabia’s steel exports to India increased from 9,000 metric tons in 2022-23 to 39,000 metric tons in 2023-24. The rise in steel imports from the UAE and Saudi Arabia reflects ongoing infrastructure projects in India, as well as strong regional trade ties.
Countries like South Africa, Taiwan, and Turkey have remained relatively small suppliers in comparison to the top exporters. South Africa, for instance, saw an increase in its exports to India, from 7,000 metric tons in 2022-23 to 9,000 metric tons in 2023-24. Taiwan, traditionally an important exporter of finished steel to India, experienced steady exports, with 185,000 metric tons in 2023-24, similar to previous years.
Turkey, on the other hand, has seen a decrease in its steel exports to India, from 5,000 metric tons in 2022-23 to just 1,000 metric tons in 2023-24. The fluctuation in Turkey’s steel exports reflects changes in both demand and supply-side conditions, including price competitiveness and the country’s own domestic market requirements.
