Construction Industry News
CRISIL has published a sectoral report on the steel industry which suggests that India has become a new importer in FY2024. As per the report, international trade flow has seen significant changes of late and weak global markets and competitive Chinese steel have negatively impacted India’s exports. That said, strong domestic demand remains a bright spot for the Indian steel industry.
Deluge of imports continues
According to provisional government data, India’s finished steel imports stood at 8.3 MT in fiscal 2024, up 38% on-year. The major imports were from China, South Korea, Japan and Vietnam.
China led the pack, with its steel exports to India reaching 2.7 MT in fiscal 2024, mainly because lower investments in the real estate sector there led to weak steel consumption, prompting steel mills to look for opportunities outside the country to boostvolume.
South Korea and Japan maintained their export volumes to India, exporting 2.6 MT and 1.3 MT, respectively. Vietnam also made it to the list of top exporters, with its exports to India rising 130% onyear. Interestingly, Vietnam, itself a major exporter, was also one of the top export destinations for China. China exported around 94 MT of iron and steel products globally in calendar year 2023, up 38% on-year.
In terms of products, flats accounted for 95% of finished steel imports by India in fiscal 2024, with non-alloys making up 76% of the flat steel category.
Hot-rolled (HR) coils and plates were the most imported steel types, accounting for 62% of the import volume and witnessing a significant increase of 117%. Galvanised plain and galvanised corrugated (GP/ GC) sheets and electrical sheets saw a 41% and 25% increase, respectively, with China being the primary source of the import volume.
A notable shift was observed in product distribution in fiscal 2024 compared to fiscal 2019, with a decline in imports of electrical sheets, a specialty grade steel. This trend is expected to continue, driven by the Production-Linked Incentive (PLI) scheme aimed at promoting the production of specialty grade steel in India between 2024 and 2030. The scheme has already approved a few large integrated players in the electrical steel category. Across all product categories, 57 MoUs have been executed for generating investment of Rs 29,500 crore, which would lead to 25 million tonne of additional capacity for specialty steel by fiscal 2028. As of December 2023, Rs 12,900 crore had already been invested and a cumulative investment of Rs 26,000 crore investment is expected by the end of the current fiscal.
The saga of rising imports has continued in fiscal 2025. In April and May 2024, India imported around 1.14 MT, up 20% on-year.
818
1320
8123
16199
262
399
![DOOR in Stainless Steel 304 Cabinet Kitchen & Dresser Drawer Pull Knob Handle | Knobs for Furntiture Drawers and Small Door [Model : Gear,Pack of 20]](https://m.media-amazon.com/images/I/31ih4dlmxcL._SX300_SY300_QL70_FMwebp_.jpg "DOOR in Stainless Steel 304 Cabinet Kitchen & Dresser Drawer Pull Knob Handle | Knobs for Furntiture Drawers and Small Door [Model : Gear,Pack of 20]")
1300
2600
499
999
2839
5699
4727
7563
799
1599
36662
38662
199
2999
899
2199
637
1270
