India systematically reduces steel imports

In January, Indian steel imports fell for the third straight month as government measures cut off metal inflows amid a global oversupply.

India has tightened its market protection against steel imports since June and raised rates on Friday due to the introduction of a minimum price for steel imports. Although imports fell 8.7 percent to 916,000 tons last month from a year earlier, imports rose 24 percent to 9.31 million tons in the 10 months to January, according to preliminary data from the Steel Ministry.

Globally, there is a fight against global metal glut, as China, the largest producer, exports its surplus amid declining domestic demand. While the Chinese government has pledged to cut steelmaking capacity, its steel exports continued to rise in 2015, surpassing 100 million tonnes for the first time. This forced competitors, the European Union to India, to impose supply restrictions.

New measures in India will help its metallurgy to regain lost domestic market share and raise prices for its products. Market share of the largest manufacturers Tata Steel Ltd. and JSW Steel Ltd. rose by as much as 4.3 percent.

At the same time, steel production fell 1.7 percent to 7.95 million tons in January from a year earlier, while consumption rose 2.8 percent to 6.98 million tons, according to the Indian Ministry. During the April-January period, steel production fell by 1.8 percent to 75.66 million tons, while demand increased by 4.2 percent to 65.92 million tons. This creates favorable conditions for Indian metallurgists.