Cheap Chinese Steel Imports Threaten India’s Domestic Industry, Says Steel Secretary Sandeep Poundrik

India’s steel industry is facing mounting pressure as a surge in low-cost imports, particularly from China, continues to flood the domestic market. Steel Ministry Secretary Sandeep Poundrik has sounded the alarm, revealing that around 150 mills have shut down and another 50 have cut production, as prices fall to their lowest level in nearly five years.

Speaking at an industry conference in New Delhi, Poundrik said the influx of cheap Chinese steel has created a major challenge for Indian producers, especially small and medium-sized mills, which contribute nearly half of the country’s total steel output. Even large players such as JSW Steel Ltd. are feeling the impact, with profit margins narrowing due to the sharp decline in domestic steel prices.

Despite the strong demand for steel driven by India’s massive infrastructure push and robust economic growth, local manufacturers are struggling to stay competitive against imported steel priced significantly lower. “Price is a problem when we need to invest in 100 million tons of capacity,” Poundrik noted, emphasizing that such expansion would require nearly $100 billion in investment, which could become unviable if price pressures persist.

The government has already imposed a 12% safeguard duty on a wide range of steel products to counter the influx of cheap imports. However, the duty is set to expire soon, and a decision on its extension is still pending. The Directorate General of Trade Remedies (DGTR) has recommended a three-year extension to protect the domestic steel industry.

Analysts suggest that without continued government support, India’s small and medium steel producers could face a prolonged downturn, delaying capacity expansion plans and affecting employment across the sector.

As the world’s second-largest steel producer, India’s ability to balance affordability with domestic sustainability will be critical in ensuring that the sector remains competitive while meeting the nation’s growing infrastructure and construction demands.