India remains net steel importer for fifth straight month in August

India remained a net finished-steel importer for the fifth month in August as imports rose 8% year-on-year, even as exports jumped 31.3%, driven partly by demand for value-added re-exports.

India remained a net importer of finished steel for the fifth straight month in August, with imports exceeding exports despite a sharp rise in overseas shipments, as companies continued to import cheaper steel for value addition and re-export.

The country imported 721,000 tonnes of finished steel in August, up 8% from a year earlier and 2.7% from July, according to provisional data from the Joint Plant Committee (JPC), the statistical arm of the steel ministry, seen by Mint. Exports stood at 694,000 tonnes, rising 31.3% from August last year but declining 0.8% from July.

India therefore recorded a net import of about 27,000 tonnes of finished steel in August.

The latest figures extend a five-month streak during which imports have exceeded exports, as export-oriented manufacturing continues to drive overseas purchases despite safeguard duties on select products.

Export demand

The West Asia war has accelerated investment in oil, gas and water infrastructure, helping Indian pipe makers win more orders for steel pipes. Mint reported on 22 June that domestic manufacturers continue to rely on imports from China, Japan and South Korea for certain critical-grade steel used in oil and gas pipelines.

“Imports have increased compared with last year, but there is no significant or abnormal change in the volumes. A large part of the imports is hot-rolled coil, and the biggest application for hot-rolled coil is pipes. There are also some machinery and engineering-related applications, but those volumes are relatively smaller,” said Dhruv Goel, CEO of BigMint, a commodities market intelligence firm.

A significant portion of these imports is linked to companies that add value to the steel and then export the finished product. For such companies, importing steel can still make economic sense because the landed cost of imported steel, without the applicable duty, is still lower than domestic prices, said Goel.

“Under advance authorization, they can import steel without paying the duty, provided it is used for value addition and subsequently re-exported. Korea and China remain the major sources of imports, while imports from Japan have been relatively limited,” said Goel.

Domestic demand

Domestic finished steel consumption stood at 14.32 million tonnes (mt) in August, up 3.9% from a year earlier, although it was marginally lower than the 14.39 mt recorded in July. Finished steel production rose 0.3% year-on-year to 13.48 mt but declined 3.9% from July.

During the first five months of the financial year, from April to August, finished steel consumption rose 7% to 70.29 mt, while production increased 3.8% to 68.14 mt. Imports during the period jumped 29.5% to 3.49 mt, while exports also rose 34.1% to 2.99 mt.

“Going forward, we should not be surprised if India continues to remain a net importer for some time. As long as there is a price advantage for companies that import steel, add value and re-export the finished product, those imports will continue. These imports do not have any impact on domestic steel prices as the metal is meant for re-export and is not intended for domestic consumption. While some volumes may otherwise have been sourced from the domestic market, the overall quantity is not large enough to have a significant impact on the entire domestic steel market,” Goel said.

About the Author

Dipali Banka is a Mumbai-based journalist who treats corporate reporting less like a beat and more like a puzzle to be solved. This invariably means she has to read through annual reports and speak with leaders and analysts. She tracks policies, deals, and the pulse of industries spanning metals, mining, paints, and cement, alongside aviation. She started out as an intern at The Statesman and then completed her postgraduate diploma in journalism from Asian College of Journalism, Chennai, in 2025. Relentlessly curious at heart, Dipali is driven by the simple urge to understand how things work and who they impact. Armed with an enduring fascination for steel and aeroplanes, she moves through the churn of daily news with focus, turning complexity into clarity without losing the story. She is particularly committed to shaping numbers into objective narratives, having little appetite for vagueness that gets in her way.<br><br>Outside the newsroom, Dipali is an unapologetically loud presence who values long conversations and longer walks to unwind. She devours books of all kinds and can often be found indulging in the lyrical sway of contemporary ghazals. She ardently believes that her relationship with her bylines is more sacred than it would ever be with anyone across the human race.