During April-July, China was the second biggest steel exporter to India, after South Korea, selling 0.6 million metric tons, up 62% from the same period a year earlier. In all, India imported 2 million metric tons of finished steel in the period, the highest since 2020 and up 23% from a year earlier. India's finished steel purchases from China touched a six-year high in the first two months of the fiscal year.

China, the world's top steel producer, exported mostly cold-rolled coil or sheets to India, used in the automobile, white goods and consumer durable sectors. India also imported electrical sheets and pipes from China.

India's Chinese steel dilemma

Despite Chinese steel flooding the Indian market and a recommendation from trade officials and lobbying from local steel manufacturers, the government may not impose a countervailing duty on select steel imports, a source had told Reuters in July. In a rare move the government was not willing to impose 18.95% CVD on certain flat rolled steel products imported from China for five years.