India’s steel import juggernaut has finally hit the brakes. In a sharp reversal, inbound shipments slumped nearly 30 per cent year-on-year to 1.4 million tonnes (mt) in the first quarter of FY26 — a direct fallout of tightened safeguard duties. What’s more, domestic steel has regained pricing edge over Chinese imports after months of being undercut.
Prices in the home market have eased to ₹50,000–50,700 per tonne, about 2 -3 per cent cheaper than landed Chinese steel, breaking a stubborn trend of price disparity.
Imports in the Q1FY25 – the year-ago period — were at 2 mt.
Decline was sharper for benchmark HRC coils, nearly 30 per cent, at 1 mt for April–June FY26, as against 1.4 mt in the year-ago-period. While in case of alloy and stainless steel offerings, the incoming shipments came down to 0.4 mt – down 30 per cent for the period under review, a Steel Ministry report show.
The Ministry report said June imports came down to 0.43 mt, fell nearly 33 per cent over the same month last year while on a sequential basis (vs May), the decline was around 8 per cent (0.47 mt).
However, India remained a net importer of the metal. Exports, despite their sequential and y-o-y increase in June to 0.45 mt, was up by 30 per cent and 14 per cent, respectively. But first quarter shipments at 1.2 mt was down 5 per cent y-o-y.
“The decline in imports is encouraging. And in terms of price, domestic players now have an advantage over Chinese shipments,” a Steel Min official said, adding: ““The import arbitrage has narrowed.”
A combination of 12 per cent safeguard duties, stricter BIS quality controls, and a crackdown on dubious grade certifications is reshaping trade flows.
Market intelligence firm, BigMint said, domestic market is currently witnessing “weak sentiment” following low demand and monsoon-led disruptions. “Buyers are only purchasing to meet their demand,” the report mentioned. Steel mills have rolled over prices in July (keeping them intact over June), it added.
Price Calculation
Market intelligence firm, BigMint in a recent report said, landed cost of imported hot rolled coils (HRCs) from “China and South Korea (are) higher than domestic prices after safeguard”. “Chinese offers are marginally higher than domestic prices,” it said.
Sources said Chinese offers into India are around $470-odd per tonne. Following which a 7.5 per cent BCD (basic customs duty) and 0.75 per cent cess is levied. This takes the new price up to $509-510 per tonne range.
On top of that, a 12 per cent safeguard plus 1.2 per cent cess is charged, since price is below the $675 per tonne threshold limit. The post-duty price stands at $576-578 per tonne (apprx). Converting it into rupees, at current exchange rate of ₹85.67, the price now stands at ₹49,347–49,520 per tonne. Add to this another ₹2,000–2,500 port and handling charge, and the final market price comes to ₹51,350 – 52,000 per tonne range.
As against this, India prices are ₹50,000–50,700 per tonne.
For months, Indian mills struggled against a flood of cheaper, often substandard, imports from China and Vietnam.
