The government has started an inquiry to decide whether to impose a safeguard duty or a temporary duty to prevent a surge in steel imports.
The probe follows a petition by the Indian Steel Association, representing major steelmakers ArcelorMittal Nippon Steel India Ltd, JSW Steel Ltd, and Jindal Steel and Power, seeking a probe into imports of “alloy and non-alloy steel flat products”. India, according to a Reuters report.
The Directorate General of Trade Remedies, part of the Trade Ministry, announced the investigation in a notice dated December 19 citing sufficient evidence of a “recent, sudden, sharp and significant increase in imports” justifying the initiation of an investigation.
Provisional government data for the first eight months of the fiscal year ending March 2025 showed India's finished steel imports from China hit a record high, raising concerns among domestic mills about the impact of cheaper shipments from China.
Total finished steel imports hit an eight-year high, with India, the world's second-largest crude steel producer, becoming a net importer during the period.
India imported 6.5 million metric tons of finished steel, a year-on-year increase of 26.6 percent.
During the same period, China exported 1.96 million metric tons of steel to India, a growth of 22.8 percent compared to the previous year.
China mainly exported stainless steel, hot-rolled coils, plates, electrical plates, galvanized plain or corrugated sheets, pipes, bars, rods and other steel products.
Finished steel imports from Japan also rose to a six-year high in the April-November period, with imports doubling to 1.4 million metric tons, the data showed.
China, Japan and South Korea together accounted for 79 percent of India's total finished steel imports during this period.
Hot-rolled coils were the most imported steel product, while bars and rods led the non-flat product category.