As we close the books on FY 2024–25, India’s steel industry has once again demonstrated its strength—not
just in numbers, but in narrative. At a time when traditional steel strongholds like the European Union
are grappling with idle capacities, high production... ... ...
March, 2025 Issue
The fiscal year 2024-2025 (FY’25) presented a complex landscape for India’s iron and steel sector. While
the industry sustained its growth trajectory, the pace moderated due to global demand fluctuations, a
downturn in Chinese steel production, and... ... ...
February, 2025 Issue
The global steel trade is once again facing turbulence, this time due to fresh tariffs imposed by the United States
under the administration of Donald Trump. However, while these duties are expected to shake up global steel flows,
their direct impact on India may remain... ... ...
January, 2025 Issue
Succeeding the post-Covid metals rally, the domestic steel industry maintained high capacity utilisation of
over 80%, strong investments, and low leverage from FY2022 to FY2024. However, ICRA noted that this trend
is unlikely to continue due to increased cheap imports, which... ... ...
December, 2024 Issue
India's domestic steel industry faces significant headwinds, with capacity utilisation projected to drop to 78%
in FY2025, the lowest in four years. A surge in cheap imports driven by duty-free inflows from FTA countries
like Japan, South Korea, and Vietnam has... ... ...
November, 2024 Issue
The most discussed topic during the month of
November 2024 was the outcome of the US election results and how Mr. Donald Trump’s victory could have
a significant impact on the global economy vis-à-vis the World Steel Industry and also the ripple effects
on... ...
October, 2024 Issue
During the recent month in a surprising shift
India turned out to be net imported of steel during 2024. Without imports reaching almost 25% during the
period of April-August over 40% of these imports came from China, making a significant shift in the
market. During the month of July... ...
September, 2024 Issue
Rating agency ICRA projects the domestic steel
consumption growth at a healthy 9-10% in FY2025. Demand was robust in Q1 FY2025, with consumption growing
at a rate of 15% on a YoY basis amidst competitively priced imports. Demand may record some ... ...
August, 2024 Issue
During the month of July 2024 world crude steel production
for the 71 countries reporting its figures to Worldsteel Association pegged a figure of 152.8 million tonnes of
crude steel production which is a 4.7% decrease compared to the same figure of July 2023. Among the top... ...
July, 2024 Issue
From the month of May 2024 global steel prices underwent a correction phase amid subdued demand making
imports more attractive. India’s Hot rolled coils (HRC) and plate imports are expected to surge by around
85% to 1.35 million tonnes in the second... ...
June, 2024 Issue
During the month of May, 2024 India produced around 12.2
million tonnes of steel while China produced 92.9 million tonnes and Japan produced 7.2 million tonnes. India
was the only large steel producing country other than Turkey and Iran who reflected a substantial growth... ...
NAVIGATING STEEL TRADE DISRUPTIONS – INDIA’S RESPONSE TO GLOBAL TRADE SHIFTS
The global steel trade is once again facing turbulence, this time due to fresh tariffs imposed by the United States
under the administration of Donald Trump. However, while these duties are expected to shake up global steel flows,
their direct impact on India may remain limited. Meanwhile, the real challenge for Indian steel producers comes
from a surge in imports from China, Korea, and Vietnam, which could soon prompt India to impose safeguard duties
to protect its domestic industry.
Trump’s Tariffs: Limited Impact on India
The U.S. has long been a challenging export market for Indian steel due to extensive anti-dumping (ADD) and
countervailing duties (CVD) imposed over the years. With more than 30 trade remedial measures already in place—some
lasting over three decades—Indian carbon steel exports to the U.S. have been minuscule. In light of this, the
latest round of tariffs is unlikely to cause significant additional harm to Indian steelmakers.
Instead, the biggest impact of the U.S. duties will likely be felt by its top three suppliers—Canada, Mexico,
and China—who together account for the bulk of American steel imports. The resulting trade diversion from
these countries will likely push surplus steel into alternative markets, including India, exacerbating existing
concerns of oversupply and price suppression.
India’s Looming Safeguard Duties
While U.S. tariffs may not directly disrupt Indian exports, the secondary effects could be severe. A glut of
global steel, displaced by trade restrictions, is already intensifying competition in India’s domestic market.
Imports from China, Korea, and Vietnam have surged in recent months, leading to growing concerns about market
distortions caused by unfair pricing and subsidized exports.
Recognizing this threat, India’s steel minister H.D. Kumaraswamy has hinted at imminent safeguard measures to
curb excessive imports. Reports suggest that the government is considering imposing safeguard duties in the
range of 15-25% within the next six months. The Directorate General of Trade Remedies (DGTR) has already
launched an investigation into flat steel imports, extending deadlines for industry responses and data
submissions. If the duties are implemented, they could remain in effect for up to two years, providing
temporary relief to Indian producers.
Industry’s Call for Action
The Indian Steel Association (ISA) has expressed strong concerns over the U.S. tariffs, arguing that they
will indirectly hurt India by flooding its market with surplus steel from displaced exporters. ISA President
Naveen Jindal has called for urgent diplomatic intervention to address longstanding trade barriers and secure
exemptions from restrictive measures.
While industry leaders welcome the prospect of safeguard duties, they also stress that short-term protection
must be complemented by long-term policy measures, including infrastructure investments, incentives for
domestic manufacturing, and stronger enforcement of anti-dumping regulations.
Looking Ahead: Balancing Protection with Growth
India’s steel sector stands at a crossroads. While protectionist measures like safeguard duties can offer
temporary relief, they are not a long-term solution. The government must strike a delicate balance—shielding
domestic producers from unfair competition while ensuring that steel-consuming industries, such as construction
and automotive, do not suffer from inflated input costs.
As global trade dynamics shift, India’s steel industry must remain agile, focusing on innovation, efficiency,
and new export markets. With strategic planning, robust policy measures, and diplomatic engagement, India can
navigate this challenging period and reinforce its position as a leading global steel producer.