India’s steel industry is reeling from a brutal 330 per cent surge in its trade deficit, rocketing to $4,748 million in FY25 — highest in recent memory, according to Steel Ministry data, accessed by businessline. Trade deficit was just $1092 million last year.
If converted to rupee terms, India’s steel trade deficit for FY25 is valued at ₹40,152 crore; then a near 345 per cent jump, against FY24’s import-to-export gap of ₹9,035 crore.
Domestic mills are haemorrhaging market share, out-priced by ruthless price calibration, by Chinese, in export markets; and have also been battered by Europe’s slowing demand.
Imports stormed to a multi-year zenith, with China, South Korea, and Japan commanding over 80 per cent of shipments; while ASEAN nations like Vietnam and Indonesia serve as possible backdoors for Chinese steel, exploiting Free Trade Agreements.
The country is now a net importer of the alloy, for the second consecutive year. Nearly 30 per cent of the imports are Chinese (in both volume and value terms)
Chinese Imports
Imports zoomed to 9.55 million tonnes – a 10 year high, and was valued at ₹80,737 crore ($ 9547 million). As against this exports stood at 5 – odd mt – a decadal low – valued at ₹40,585 crore ($ 4799 million), the report mentioned.
In FY24, incoming shipment of the alloy was valued valued at ₹68,193 crore ( $ 8237 million) for 8.3 mt of the metal. Outbound shipments of 7.5 mt in that year was valued at ₹59,157 crore ($ 7145 million).
Last fiscal, China was the second largest seller of steel into India by volume, at 2.5 mt (down 5 per cent YoY), but was the largest in value terms, despite price differentials, at $ 2647 million (down 4 per cent).
Korea imported 2.8 mt (up 5 per cent) and valued at $2200 million (down 2 per cent).
Japan imported 2.0 mt of the meta, up 60 per cent y-o-y and it was valued at $1800 million, up 32 per cent over FY24,
Plummeting global prices and cut-throat imports have left Indian producers staggering, prompting an imposition of 12 per cent provisional safeguard duty on select flat steel offerings from China and Vietnam, slapped-on in April 21, for 200 days.
“Chinese imports have been down over the last two to three months as discussions on safeguard imposition picked up pace,” a Ministry official said.
Exports Hit
Big export regions of Europe and West Asia have been hit.
Data showed, exporters ceded market share in key EU nations, that include Italy, where shipments dipped by 60 per cent to 0.7 mt and valued at $673 million (down 50 per cent); in Belgium there was a 35 per cent dip in volumes at 0.54 mt, valued at $482 million (down 35 per cent YoY). Spain, saw a 40 per cent plummet to 0.42 mt and 43 per cent fall in value at $ 331 million.
In case of UAE, volumes were at 0.5 mt, down 6 per cent; and valued at $ 445 million, down 8 per cent. Nepal saw volumes at 0.54 mt – down 4 per cent; and valued at $ 300 million (down 16 per cent).
Published on April 23, 2025
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