In a major development reflecting changing global steel trade dynamics, India’s finished steel imports witnessed a steep 27.6% year-on-year decline to 0.89 million tonnes (MT) during April-May FY26, according to provisional data released by the Ministry of Steel. This marks a significant reduction from 1.23 MT imported during the same period last fiscal year, driven by lower shipments from China, Japan, and South Korea amid slowing domestic demand and improved local production.
🔍 Key Highlights
| Parameter | April-May FY26 | April-May FY25 | YoY Change (%) |
|---|---|---|---|
| Finished steel imports | 0.89 MT | 1.23 MT | -27.6 |
| China imports | 0.22 MT | 0.33 MT | -33.3 |
| Japan imports | 0.18 MT | 0.29 MT | -37.9 |
| South Korea imports | 0.31 MT | 0.42 MT | -26.2 |
| Others | 0.18 MT | 0.19 MT | -5.3 |
(Source: Ministry of Steel, provisional data, July 2025)
🏭 Why Did Imports Decline?
- Reduced shipments from China and Japan as Indian buyers shifted focus to domestic producers due to competitive pricing and quality improvements.
- Stronger domestic steel production, with India’s finished steel output rising 6.2% to 21.3 MT during April-May FY26, led by Tata Steel, JSW Steel, and JSPL.
- Government’s anti-dumping duties on certain flat products from China and Vietnam imposed last year continued to restrict import flows.
- Slower demand in auto and construction sectors in April due to election-related project halts and heatwave disruptions, reducing import necessity.
🏦 Steel Producers’ Perspective
JSW Steel Joint MD & CEO Jayant Acharya stated:
“The decline in imports reflects the strengthening capabilities of Indian steel producers. Going forward, infrastructure demand pick-up and real estate revival post-monsoon will keep domestic production buoyant.”
🔬 Country-wise Finished Steel Imports (April-May FY26)
| Country | Volume (MT) | Share (%) |
|---|---|---|
| China | 0.22 | 24.7 |
| Japan | 0.18 | 20.2 |
| South Korea | 0.31 | 34.8 |
| Vietnam | 0.08 | 9.0 |
| Others | 0.10 | 11.3 |
| Total | 0.89 | 100 |
🗣️ Ministry Of Steel’s View
In its report, the Ministry said:
“India remains a net exporter of steel with export volumes exceeding imports by over 0.56 MT during April-May FY26. Strategic focus on capacity expansion under PLI scheme and import substitution is yielding positive results.”
📈 Finished Steel Trade Balance (April-May FY26)
| Parameter | Volume (MT) |
|---|---|
| Exports | 1.45 |
| Imports | 0.89 |
| Net exports | 0.56 |
(Source: Ministry of Steel)
💡 Domestic Production Snapshot (April-May FY26)
| Company | Finished Steel Output (MT) | YoY Growth (%) |
|---|---|---|
| Tata Steel | 3.82 | +5.9 |
| JSW Steel | 4.10 | +6.3 |
| SAIL | 3.20 | +4.7 |
| JSPL | 1.78 | +9.1 |
| AM/NS India | 1.72 | +6.8 |
| Others | 6.68 | +5.5 |
| Total | 21.30 | +6.2 |
🏗️ Industry Factors Influencing Steel Imports
- Global steel oversupply easing: China reduced exports due to internal demand growth and production curbs under green targets.
- Indian government’s anti-dumping duties and BIS quality norms restricted low-cost imports.
- Weak auto sector production in April-May (-2.1% YoY for passenger vehicles) led to lower cold-rolled coil imports.
- Construction steel demand (TMT bars, rebars) saw temporary slowdown due to election-related project execution delays and extreme heatwaves in north India.
🔎 Analysts’ Views
Vinit Bolinjkar, Research Head, Ventura Securities:
“The import decline is positive for Indian steelmakers. It reflects strengthening competitiveness and room for improved capacity utilisation. We expect import volumes to rise marginally in Q3 as construction demand recovers.”
ICRA Steel Sector Note:
“Overall finished steel consumption growth is projected at 7-8% in FY26. Import moderation will aid domestic realisation stability, supporting profitability.”
🏆 Government’s Policy Impact
| Policy Measure | Impact |
|---|---|
| PLI scheme for specialty steel | Reduced dependence on alloy and coated steel imports |
| BIS quality certifications | Prevented substandard imports |
| Anti-dumping duties | Discouraged predatory pricing by Chinese and Vietnamese exporters |
| Green steel initiatives | Encouraging domestic production through low-carbon technologies |
💰 Steel Prices Snapshot (June 2025)
| Product | Price (Rs/tonne) | MoM Change (%) |
|---|---|---|
| Hot Rolled Coil (HRC) | 55,800 | +1.4 |
| Cold Rolled Coil (CRC) | 63,200 | +0.8 |
| TMT Bars | 54,100 | -0.5 |
(Source: SteelMint India)
🔮 Outlook For FY26
- Domestic steel demand projected to grow by 7-8%, driven by highways, railways, metro projects, and affordable housing.
- Imports likely to remain subdued due to robust domestic supply, except in certain high-grade electrical steel segments.
- Exports may remain flat to marginally positive amid global demand uncertainties and EU carbon border taxes from 2026.
- Profitability of Indian producers is expected to improve, supported by stable realisations and import moderation.
✅ Key Takeaways
- India’s finished steel imports fell 27.6% YoY to 0.89 MT during April-May FY26, led by sharp declines in shipments from China, Japan, and South Korea.
- Strengthening domestic production, anti-dumping duties, and improved competitiveness contributed to the decline.
- India remained a net exporter with exports exceeding imports by 0.56 MT, underlining its growing stature as a global steel hub.
- Steel majors are confident of demand revival post-monsoon, with upcoming infrastructure push and residential real estate projects driving growth in H2 FY26.
📌 Disclaimer
This news content is for informational and editorial purposes only. Data has been sourced from the Ministry of Steel, company filings, SteelMint, and brokerage research reports. Readers are advised to follow official ministry releases for final monthly and quarterly steel trade data.
