India's Still Remains A Net Importer Of Steel: Reports

According to preliminary government data, India's finished steel imports reached a five-year high in the first two months of the fiscal year that started in April, and the nation is still a net importer.

India, the second-largest producer of crude steel in the world, has seen strong demand for steel due to the country's thriving construction and automotive industries.

According to the data, India imported 1.1 million metric tons of finished steel in April and May, a 19.8 per cent increase from the same period last year.

Concerned by a sharp increase in imports, India's steel mills have been pleading with the government for intervention and protective measures on several occasions. Citing strong local demand, the federal Ministry of Steel has rejected such calls.

Along with South Korea, China was India's top supplier of steel in the previous few months. Chinese imports have been identified as a "growing concern" by significant Indian steel producers, including Tata Steel.

Amidst this, India's consumption of finished steel surged 10.5 per cent to reach a six-year high of 23 million tons in April and May, indicating a strong demand for the alloy in one of the fastest-growing economies globally.

India has become a lucrative market for Indian and international steel manufacturers due to its rapid economic growth and increased infrastructure spending, especially with the slowdown in steel demand in Europe and the US

With 24.6 million tons produced, crude steel output increased 4.9 per cent from the previous year.

Published on: Wednesday, June 12, 2024, 03:31 PM IST