Uzbekistan Looks to India for Lower-Cost Steel Imports

Uzbekistan is looking to India as a potential new source of steel imports, with lower logistics costs emerging as a key factor behind the move. The landlocked Central Asian country currently imports around 1 million tonnes of steel every year, including TMT bars, largely from China.

For Uzbekistan, transportation costs form a significant part of the landed cost of steel. Industry officials said moving steel from China to Uzbekistan through the sea route can cost as much as $100 per tonne, over and above the price of the material itself.

India could offer Uzbekistan an alternative supply route. The shorter logistics pathway being explored between the two countries is expected to help reduce transportation expenses and potentially improve the competitiveness of Indian steel in the Uzbek market.

The proposed trade opportunity also comes with an institutional framework. The Uzbekistan Metallurgy Association has signed a Memorandum of Understanding with the Indian Steel Association to promote cooperation between the steel industries of the two countries.

The agreement covers areas including manufacturing, technology, environmental practices, sustainable growth and logistics. It is also expected to provide a platform for greater interaction between industry stakeholders in India and Uzbekistan.

The development comes as Indian steel producers look to expand their presence in international markets. India is currently the world’s second-largest steel producer, and increasing exports has become an important part of the industry’s growth strategy.

For Uzbekistan, diversifying its steel supply chain could help reduce dependence on existing sources while improving access to competitively priced products. TMT bars are among the products that could benefit from stronger trade links, particularly as construction and infrastructure activity continue to support steel demand.

For Indian producers, the Uzbek market could provide an additional export destination beyond established markets in Europe, Southeast Asia and the Middle East.

The success of the proposed trade route will ultimately depend on the economics of transportation, supply reliability and the ability of Indian producers to offer competitive prices. However, the cooperation between the two steel associations marks an initial step towards strengthening commercial ties between the two industries.

If the logistics advantage can be realised, Uzbekistan’s interest could open another avenue for Indian steel exporters seeking to build a stronger presence in Central Asia.