India’s steel industry is facing a significant shift, with a 34% drop in finished steel imports from April to October, as revealed by government data. But here’s the intriguing part: despite being the world’s second-largest crude steel producer, India’s steel market dynamics are in flux.
A snapshot of the situation: On April 5, 2025, a cyclist passed by unloaded steel coils at the Deendayal Port in Kandla, Gujarat, India, a scene captured by Reuters photographer Amit Dave. This visual sets the stage for a deeper exploration of the country’s steel trade.
During the first seven months of the financial year, India imported 3.8 million metric tons of finished steel, with South Korea leading the way, followed by China, Japan, and Russia. However, the country’s steel industry faced challenges. Domestic steel prices were under pressure due to weak demand and high supply, exacerbated by the festive season’s subdued trading activity, according to a government report.
Reuters shed light on the struggles of small steel producers in October, who were grappling with the same issues of weak demand and falling prices. Yet, India’s steel exports during April-October rose by 25.3% year-on-year, reaching 3.5 million metric tons, with Italy and Belgium as the top markets, followed by Spain.
Production and Consumption: India’s finished steel production from April to October reached 91.6 million metric tons, while crude steel production stood at 95.7 million metric tons. Interestingly, finished steel consumption during the same period increased by 7.4% year-on-year to 92.2 million metric tons.
This data paints a complex picture of India’s steel industry, raising questions about the balance between domestic production, imports, and exports. Is the drop in imports a temporary blip or a sign of a shifting market? How will small producers adapt to these challenges? And what does this mean for India’s position in the global steel trade?
Neha Arora, a Reuters journalist specializing in metals and mining, brings her expertise to this story, having previously covered the pandemic and India’s economic policies. Her reporting offers a comprehensive view of the steel industry’s evolving dynamics, leaving readers with much to consider and discuss.