Indian steel imports down 20% in January-May amid safeguard duty

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India’s steel imports dropped sharply in the first five months of the current calendar year, as the provisional 12 per cent  safeguard duty imposed in mid-April appears to have curbed the surge seen in 2024, when the world's second largest producer of steel became the net importer.

According to data from BigMint, total steel and stainless imports between January and May 2025 stood at 3.68 million tonnes — down nearly 20 percent from 4.37 million tonnes in the same period last year.

South Korea was the leading steel exporter to India during April-May with a share of 26 percent, followed by China at 20 percent, Vietnam (16 percent) and Japan (10 percent), the market analytics firm said in its report.

The drop in imports comes as the safeguard duty imposed by the government barred exporters like South Korea, China and Vietnam from selling below the set threshold between $675 per tonne to $964 per tonne (including shipping and insurance) for select steel product categories. Any shipment imported below these import prices would attract the safeguard duty, deterring imports of mainly finished flat products.

HRC (Hot rolled coil) imports dropped 6 per cent in May 2025 as compared to March. HRC is the most essential flat steel product, mainly used in automotive, oil & gas  and construction industries. Its price movements serve as a key indicator of health in the steel and core sectors.

Meanwhile, finished flat products, mainly HRC, pipes and tubes, galvanized and coated strips and sheets and electrical steel comprised 62 per cent of total imports in April-May, as per data. Stainless steel imports had a share of 4 percent  of total imports during the period.

The move aimed to shield domestic producers will help companies like JSW Steel and Tata Steel bag better realisations and witness margin expansion to the tune of Rs 2,000 per tonne in the first quarter of FY26, according to analysts.

The recently imposed 12 percent provisional safeguard duty has significantly reduced the price differential between domestic HRC and imported material. Landed HRC from China now stands at Rs 49,900/tonne, reflecting a narrow discount of Rs 600/tonne  compared to a discount of Rs 1,200/tonne earlier in 4Q, JM Financial wrote in its note on June 11.

JSW Steel MD and CEO Jayant Acharya said in a post-earnings analyst call last month that India may no longer remain a net importer of steel if import levels continue to stabilise. He added that the current gap caused by net imports could narrow significantly in the coming months.

While the domestic producers were pushing for 25 per cent duty, current tariffs have caused a sharp fall in imports from the FTA countries and China.

The consistent decline in global steel prices would have led to steel imports retaining some of their attractiveness for Indian buyers only if the duty was not in place. In addition, domestic prices have weakened considerably and so the urge for imports is absent, BigMint said.