India’s steel industry is sounding the alarm over a surge in cheap imports, particularly from China, that is eroding domestic competitiveness and weakening margins across the sector. Industry representatives have warned that the influx of low-priced steel products is distorting market dynamics, forcing local producers to operate at reduced capacity levels, in some cases as low as 60 per cent.
The situation has been compounded by a sharp decline in domestic steel prices, which have fallen to a five-year low. This sustained price pressure is squeezing profit margins for both integrated producers and mid-sized secondary manufacturers. Industry observers note that such depressed prices not only impact the financial health of producers but also threaten ongoing investment plans and capacity expansion projects.
Lower capacity utilisation is emerging as a growing concern, with several mills cutting back production to manage excess inventory and limit losses. The imbalance between domestic demand and the surge in low-cost imports has created a challenging environment, undermining the industry’s efforts to maintain stable growth amid volatile global conditions.
Producers are calling for stronger government intervention to safeguard the domestic market. Key demands include stricter import monitoring, the introduction of safeguard or anti-dumping duties, and tighter quality control orders to ensure that only certified material enters the country. Many believe that such measures are essential to restore fair competition and protect the long-term sustainability of India’s steel sector.
As one of the world’s fastest-growing steel markets, India’s ability to maintain self-reliance and industrial resilience depends on a balanced trade environment. Unless immediate policy action is taken, industry leaders warn that the current import surge could weaken domestic production capacity, delay new investments, and disrupt the progress of India’s steel-intensive infrastructure and manufacturing ambitions.
