India’s steel industry is witnessing significant shifts in trade dynamics, with a notable surge in exports and a stabilising trend in imports, leading to a narrowing of the steel trade deficit.
According to a report from the Steel Ministry, the trade deficit for the April-February period has decreased to ₹10,411 crore ($1,258 million), marking a 10% reduction compared to the previous period. Imports of finished steel reached 7.6 million tonnes (mt) valued at ₹63,432 crore ($7,663 million), while exports stood at 6.6 mt valued at ₹53,021 crore ($6,405 million). Despite being a net importer, India’s steel trade deficit has shown improvement, with exports experiencing a remarkable 78% year-on-year increase. The report highlights that Europe emerged as a significant destination for Indian steel exports, accounting for 45% of the total outbound shipments. Italy, Spain, and Belgium were identified as the top buyers within the region, signalling robust demand for Indian steel products. Notably, Italy witnessed a substantial surge in imports from India, with shipments increasing by 85% year-on-year to 1.5 mt. Similarly, exports to Belgium rose by 37% year-on-year to 0.8 mt, indicating growing market penetration in the European market.
Spain, another key European buyer, experienced a remarkable increase in exports from India, recording a more than 100% surge to 0.63 mt for the April-February period. This surge reflects the competitiveness of Indian steel products in international markets and underscores the country’s growing stature as a reliable steel exporter. Apart from Europe, other significant buyers included Nepal and the UAE, where exports witnessed mixed trends. While exports to Nepal increased by 14% to 0.6 mt, shipments to the UAE declined by 28% to 0.5 mt. These fluctuations highlight the evolving dynamics of India’s steel trade and the need for continuous market analysis and adaptation.
Furthermore, the report emphasises the dominance of hot rolled coil/strips in both imports and exports, with China identified as the largest seller. This underscores the importance of understanding global supply chains and market dynamics to navigate the complexities of the steel trade. India’s steel industry is experiencing notable shifts in trade patterns, with a focus on expanding exports and optimising imports to address trade imbalances. The surge in exports to Europe and other key markets reflects the competitive strength of Indian steel products and bodes well for the sector’s growth trajectory
