Japan and South Korea strengthened their grip on the Indian steel market in April, supplying nearly three-fifths of the total imports, according to government data seen by Reuters.
The increasing inroads the foreign steelmakers are making will add to pressure on the Indian government to take protectionist measures to support local mills. Indian steelmakers have been lobbying New Delhi for such backing in recent weeks.
India, the world’s second biggest steel producer, relies on imports to meet demand for high-grade steel required for automobiles and white goods.
Japan and South Korea together supplied about 57% of India’s 630,000 tonne of steel imports in April, compared with about 45% in the same month a year ago, the provisional data showed.
Free trade treaties with Japan and South Korea allow tax free imports from the two nations, giving them an edge over others.
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Steel imports from Japan in April jumped 27% to 116,000 tonne from the same month year ago, while Korean imports rose 15% to 245,000 tonne, the data showed.
Overall, India’s steel imports fell 6.1% in April from a year earlier but the world’s second-biggest steel producer retained the net importer tag for a second month in a row as exports also slowed during the month, the data showed.