China Emerges as Top Steel Exporter to India in April 2026 Despite Import Tariffs

China has emerged as the largest exporter of finished steel to India in April 2026, with shipments more than doubling compared to previous months, raising concerns among domestic steel producers over increasing inflows of low-priced imports.

According to provisional government data reviewed by Reuters, China exported around 232,000 tonnes of finished steel to India during April, marking the highest monthly shipment level in at least two years. The surge comes despite India’s decision to impose safeguard duties on certain steel products in an effort to protect domestic manufacturers from cheap imports.

The majority of Chinese shipments consisted of hot rolled coils and stainless steel products. While hot rolled coils are covered under India’s safeguard measures, stainless steel imports remain exempt, allowing Chinese suppliers to maintain a strong presence in the Indian market.

Industry executives have pointed out that Chinese steel continues to be available at prices ranging between $11 and $37 per tonne lower than comparable domestic products. This price advantage has attracted buyers despite ongoing concerns from local steelmakers regarding unfair competition.

Adding to the pressure, some steel industry executives believe that a portion of the imported material was originally intended for Middle Eastern markets but was redirected to India following disruptions caused by geopolitical tensions in the region.

Vietnam also recorded a sharp increase in steel shipments to India during April, with exports rising more than fourfold to about 59,000 tonnes. Industry representatives have expressed concerns that some Chinese-origin steel may be entering India through countries that enjoy preferential trade arrangements.

Despite the latest surge, China’s steel exports to India during FY26 declined by nearly 39.4 percent to 1.5 million tonnes compared with the previous year. However, the strong rebound in April indicates that import pressures continue to persist.

With steel demand in India being driven by infrastructure development, construction activity, manufacturing expansion and the automotive sector, industry observers expect import trends to remain closely watched in the coming months as domestic producers seek stronger safeguards against low-cost overseas supplies.