Mon Sep 09 14:04:17 UTC 2024: ## India Shifts to Net Steel Importer as Consumption Surges
**New Delhi:** India has transitioned back to a net importer of steel, with imports exceeding exports for the first five months of the current fiscal year (April-August). According to a Steel Ministry report, imports stood at 3.5 million tonnes, a 25% year-on-year increase, while exports declined by 40% to 1.9 million tonnes. This marks a reversal from the previous fiscal year, where India was a net exporter of steel.
The shift is attributed to a combination of factors, including a surge in domestic demand and a slowdown in global steel markets. India’s total steel production and consumption during this period saw a 5% and 14% increase year-on-year, reaching 59 million tonnes and 60.3 million tonnes, respectively. August witnessed the highest average steel usage, at 12.6 million tonnes.
The report highlights a significant rise in finished steel imports in August, reaching 0.8 million tonnes, a 4% increase year-on-year. Non-alloyed steel imports were near flat year-on-year, while alloyed and stainless steel imports grew by 5%.
“The rising domestic demand, driven by infrastructure and construction projects, has put pressure on steel supply,” stated an industry expert. “The decline in exports is also partly due to the slowdown in global steel markets, particularly in China, which has been experiencing its own steel crisis.”
The government is reportedly considering imposing a border adjustment tax on steel imports to level the playing field for domestic steel producers. This move, if implemented, could further impact import trends and encourage local steel production.
The steel sector is closely watching the evolving global and domestic market conditions, and the government’s response, to understand the future trajectory of steel trade and production in India.
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