Rising Steel Imports to Intensify Pressure on Indian Industry: India Ratings

India Ratings and Research (Ind-Ra) has released a report analyzing the surge in steel imports to India, their impact on domestic demand, and the challenges faced by the industry. Key exporters include China, Vietnam, Japan, and Korea, whose lower-priced imports have pressured the Indian steel sector's margins, particularly since 3QFY24.
Amid China’s weak domestic demand and declining local prices, Chinese steel exports peaked in 1QFY25, leading to subdued international prices and intensified competition. Ind-Ra expects this trend to continue, potentially dampening domestic realisations and further impacting margins through 2HFY25. The agency is monitoring potential industry actions to curb imports and their inflationary impact, with a focus on how recent domestic stimulus measures could influence demand.