India’s Steel Imports Drop 27.6% in April-May as China, Japan Shipments Decline

India’s finished steel imports saw a sharp 27.6% year-on-year fall in April-May FY25, as inbound shipments from key suppliers China and Japan declined significantly, according to provisional government data reviewed by Reuters.

India, the world’s second-largest crude steel producer, imported 0.9 million metric tons of finished steel during the two-month period. Imports from China dropped 47.7% to 0.2 million tons, while Japan’s supplies plummeted 65.6% to just 0.1 million tons.

The downturn follows India’s imposition of a 12% temporary safeguard duty in April to rein in a surge of low-cost imports, mainly from China. Despite the decline from China and Japan, South Korea emerged as India’s top finished steel supplier, with shipments rising 8.2% year-on-year to 0.4 million metric tons. Together, China, Japan, and South Korea accounted for 74.4% of India’s finished steel imports.

Hot-rolled coils and strips remained the top imported products during this period.

While imports dropped, India also witnessed an 18.1% fall in its finished steel exports, which stood at 0.8 million metric tons. Galvanised plain or corrugated sheets or coils were the leading export items. Belgium was India’s top export destination, with shipments growing 12.4% to 0.15 million tons. However, exports to Italy declined steeply by 53.7%. Shipments to Nepal and Spain increased.

Despite the trade dip, domestic demand stayed strong. India’s finished steel consumption grew 7.1% year-on-year to 25.1 million metric tons during April-May, while crude steel production rose 9.5% to 26.9 million metric tons.

The trends highlight India’s protective trade measures amid growing domestic demand and a shifting landscape in global steel trade flows.