The government has initiated an investigation to determine whether it should impose a safeguard duty or a temporary tax to curb the surge in steel imports.
The inquiry follows a petition by the Indian Steel Association, which represents major steel producers like ArcelorMittal Nippon Steel India Ltd, JSW Steel Ltd, and Jindal Steel and Power, requesting an investigation into imports of “Non-Alloy and Alloy Steel Flat Products” into India, according to a Reuters report.
The Directorate General of Trade Remedies, which is part of the Ministry of Trade, announced the investigation in a notice dated December 19, citing sufficient evidence of a “recent, sudden, sharp and significant increase in imports” that justifies starting an investigation.
Provisional government data for the first eight months of the fiscal year ending in March 2025 showed that India’s finished steel imports from China reached a record high, raising concerns among domestic mills about the impact of inexpensive shipments from China.
Overall finished steel imports hit an eight-year peak, with India, the world’s second-largest crude steel producer, becoming a net importer during this period.
India imported 6.5 million metric tonnes of finished steel marking a 26.6 percent year-on-year increase, the data showed.
During the same period, China exported 1.96 million metric tonnes of steel to India, up 22.8 percent compared to the previous year.
China primarily exported stainless steel, hot-rolled coils, plates, electrical sheets, galvanized plain or corrugated sheets, pipes, bars, rods and other steel products.
Finished steel imports from Japan also surged to a six-year high during April-November, with imports more than doubling to 1.4 million metric tonnes, according to the data.
China, Japan, and South Korea together accounted for 79 percent of India’s total finished steel imports during this period.
Hot-rolled coils were the most imported steel product, while bars and rods led the non-flat product category.
