India remained a net importer of finished steel in Q1FY27, with imports jumping 49.2% year-on-year to 2.064 million tonnes during April-June, according to provisional data from the Joint Plant Committee (JPC) reviewed by Mint. This surge outpaced exports, which rose 31.4% to 1.593 million tonnes, creating a trade deficit despite government efforts to protect local producers through safeguard duties.
The import surge was driven by strong domestic demand from export-oriented downstream manufacturers, particularly pipe and tube makers, according to Equirus Securities. As governments across West Asia accelerate investment in oil, gas and water infrastructure, Indian pipe makers are winning more orders for steel pipes. Import momentum strengthened further in June 2026, with imports increasing 58.2% year-on-year to 0.7 million tonnes - the highest monthly level in the past 17 months, as reported by Equirus analysts.
Despite the import surge, domestic steel production and consumption continued expanding during the quarter. Finished steel production rose 5.9% year-on-year to 40.994 million tonnes, while apparent steel consumption grew 8.3% to 41.569 million tonnes, suggesting demand continued to outpace domestic supply. Crude steel production increased 3% to 42.06 million tonnes during April-June, as reported by Mint.
The elevated import levels have begun impacting domestic steel prices, with both flat and long product prices moderating since end-May 2026, according to Equirus analysts. The private sector continued to dominate India's steel industry during the quarter, accounting for 84% of crude steel output and 87% of finished steel production. Finished steel production by private companies rose 8% year-on-year, while output from public sector units declined 6.2%.
The persistence of imports has sharpened concerns among domestic steelmakers, who argue that cheaper shipments, particularly from China, South Korea and Japan, are hurting prices and margins. The government imposed safeguard duties on certain steel products last year to curb excessive imports and protect local manufacturers. Last month, New Delhi initiated an anti-dumping investigation into imports of hot-rolled flat steel products from China, Japan and Russia after leading domestic producers alleged material injury to the local industry.
