India’s finished steel imports from China touched a five-year high in the first four months of the fiscal year that began in April, according to provisional government data reviewed by Reuters.

During April-July, China was the second-biggest steel exporter to India, selling 0.6 million metric tonnes, up 62 per cent from the same period a year earlier.

In all, India imported 2 million metric tonnes of finished steel in the period, the highest since 2020 and up 23 per cent from a year earlier. China, the world’s top steel producer, exported mostly cold-rolled coil or sheets to India.

South Korea was the top exporter to India, shipping out 0.7 million metric tonnes and accounting for 35 per cent of overall steel imports.

India, the world’s second-biggest crude steel producer, was, however, a net exporter of finished steel between April and July, with 2.6 million metric tonnes sold to buyers, including Italy, Spain, Belgium, Nepal and the UAE, the data showed.

India’s crude steel production stood at 45.8 million metric tonnes in April-July, up 11.5 per cent from a year earlier. Consumption of finished steel was 41.2 million metric tons, up 12.2 per cent on the year.

Export benefits

The government is expected to extend export benefits under the RoDTEP scheme to iron and steel, chemicals and pharmaceutical sectors beyond September 30, according to a senior official.

In December 2022, the government extended the benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme to chemicals, pharmaceuticals and products of iron and steel till September 30 this year.

“As exports are not doing good for the last few months, there is a demand to extend it for about six months till March 2024. It is under consideration. We may extend it,” the official said.

These three sectors were late entrants into the scheme that aims to refund duties, taxes and levies at the central, state and local level that gets added to the cost of products meant for exports.

This scheme is a replacement for the Merchandise Exports from India Scheme (MEIS) which ended last year.

Reuters and PTI