In July, India became a net importer of steel for the fourth time in the last year. And therein lies a tale of tariffs, changes in steel prices, and supply and demand. However, before discussing those issues, it’s important to revisit the facts.
A recent report by India’s Steel Ministry revealed the country became a net importer of steel for the first time in the ongoing fiscal year and the fourth time in a calendar year. Throughout this month, the country imported 587,000 tons of steel, while exports amounted to 513,000 tons. Meanwhile, both imports and exports grew by more than 30%.
Analysts attribute this discrepancy to the surge in imports of competitively priced steel. This steel predominantly originated in China, though South Korea also contributed significant amounts. In July, for instance, imports outpaced exports by a margin of 74,000 tons.
The Indian Steel Association’s (ISA) reaction has been a mix of concern and annoyance. In fact, the organization now says it will take up the matter of this sharp upsurge in imports with the Indian Government. This means it will likely call for corrective measures (read: tariffs) to address the evident trade distortions.
