India imported 8.3 MT steel in FY24, becomes net importer of the metal

However, strong domestic demand remains a bright spot for the Indian steel industry, the report said.

From being an exporter of steel, India became a net importer of the metal in FY24, with an overall trade deficit of 1.1 million tonnes.

Exports from India were impacted by weak global markets and competitive pricing by China, while South Korea and Japan maintained their export volumes to the country, according to a report by Crisil.

India imported 8.3 million tonne (MT) of finished steel in FY24, a 38% year-on-year increase, primarily from China, South Korea, Japan, and Vietnam. The country had been a net exporter of steel since FY17.

However, strong domestic demand remains a bright spot for the Indian steel industry, the report said.

China led the pack with exports of 2.7 MT to India in FY24, driven by lower investments in its real estate sector and weak steel consumption. This prompted Chinese steel mills to seek opportunities outside the country to boost volumes.

South Korea exported 2.6 MT to India, while Japan exported 1.3 MT, maintaining their export volumes. Vietnam, with a 130% y-o-y increase, also became a significant exporter to India.

Also ReadVGF for Rs 7,453-crore offshore wind energy projects

Flat steel products accounted for 95% of finished steel imports by India, with non-alloys making up 76% of the flat steel category. Hot-rolled (HR) coils and plates accounted for 62% of the imports, witnessing a 117% rise.

Galvanised plain and galvanised corrugated (GP/GC) sheets and electrical sheets saw a 41% and 25% rise, respectively, with China being the primary source of these imports.

In the calendar year 2023, China’s global exports rose 38% y-o-y to about 94 MT of iron and steel products.

Indian exports of finished steel totalled about 7.5 MT in FY24, up 11.5% from the low base of the previous year. In terms of volume, flat products accounted for the bulk of the exports, with the European Union being the country’s largest export market.

Exports had declined in the first half of FY24 but picked up pace in the second half, particularly in the last quarter, increasing 37% y-o-y.

Italy and Belgium were the top export destinations, followed by Nepal and the UAE. Exports to the EU rose 51% in FY24, with the region accounting for 36% of India’s overall export basket, the report added.