In a significant shift in trade dynamics, India has emerged as a net importer of steel from April to August 2024. This period saw steel imports rise by 25% to 3.5 million metric tons, while exports fell sharply by 40% to 1.9 million metric tons, according to a report from the Steel Ministry. August's import data reveals interesting trends. Finished steel imports for the month stood at 0.8 million metric tons, marking a 4% increase year-on-year, although they remained flat compared to July. Non-alloyed steel imports were nearly unchanged year-on-year at 0.54 million metric tons, but saw a 7% decline from July. On the other hand, alloyed and stainless steel imports increased by 5% year-on-year to 0.22 million metric tons and surged by 29% compared to July, reflecting a growing demand for specialized steel categories.
Despite increased domestic production, the surge in imports has led to India becoming a net importer of steel by 1.6 million metric tons. This marks a reversal from the previous fiscal year, where India was a net exporter of steel during the same period. The current scenario highlights the challenges faced by the Indian steel industry amidst changing global trade patterns and domestic demand fluctuations.
In contrast, during the same period in the previous fiscal year (5MFY24), India exported 3.2 million metric tons of steel and imported 2.8 million metric tons, making it a net exporter by 0.4 million metric tons. The shift to a net importer status underscores the impact of various factors, including competitive international pricing, domestic demand, and potential trade policies affecting the steel sector.
During this five-month period of the fiscal year 2025, India's finished steel consumption reached 53 million metric tons, with production slightly higher at 56 mt. This represents a year-on-year increase in both production and consumption, by 5% and 14% respectively. August recorded the highest average steel usage among the first five months of the fiscal year, with consumption peaking at 12.6 million metric tons.
In terms of production and consumption, August saw finished steel consumption rise to 12.6 mt, a 5% increase from July's 12.1 million metric tons. Since April, when consumption was around 11 million metric tons, the monthly average has stabilized around 12.2 million metric tons. Finished steel production in August was approximately 12 million metric tons, up 2% from July and 4% higher than August 2023's production of 11.47 million metric tons.
