India's steel imports from China hit a five-year high in April, reaching their highest level since 2019, as reported by provisional government data.
China emerged as the second-largest steel exporter to India in April, shipping out 0.1 million tonnes, a significant increase of 79% compared to the previous year. Imports from China accounted for nearly a quarter of India's overall finished steel imports during that month. The majority of China's exports to India were cold-rolled sheets, which are utilized in various sectors such as automobiles, white goods, and consumer durables. Additionally, India also imported electrical sheets and pipes from China.
South Korea topped the list of finished steel exporters to India in April, shipping out 0.2 million tonnes and accounting for 32% of India's total imports.Despite being the world's second-largest crude steel producer, India became a net exporter of finished steel in April, selling 0.9 million tonnes to major buyers like Italy, Spain, Vietnam, Nepal, and the United Arab Emirates. India's steel exports to Italy experienced a surge in April, reaching their highest level in six years.
While Europe serves as a vital market for India's steel, concerns have arisen among Indian steel manufacturers due to the European Union's plans to impose a levy on high-carbon goods imports starting in 2026, targeting steel imports and a few other commodities.
On the domestic front, India's crude steel production in April stood at 10.7 million tonnes, reflecting a 3.2% increase compared to the previous year.
Driven by rising demand from the domestic construction, railway, and capital goods sectors, India's steel consumption is projected to grow by 7.5% during the current fiscal year, ending in March 2024.
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