The focus keyword Russia steel exports to India encapsulates the key development: India is witnessing a marked rise in steel shipments from Russia. While Russia has not yet become India’s top steel importer, its share has grown substantially — prompting serious attention in the industry.
Background: India’s Steel Import Context
India, the world’s second-largest crude steel producer, still relies on imports for specific categories of finished steel (e.g., hot-rolled coils, specialty steels) and to meet demand in certain segments. According to government data, while India is producing more, it also is increasing imports in segments where domestic supply or cost is a challenge.
Historically, Russia’s share in India’s steel import basket was very small (around 4% in 2016).
The Surge: Russia’s Steel Exports to India
Volume and growth
- Between April 2022 and January 2023, India imported around 281,000 tonnes of Russian steel — nearly five times the volume from the same period a year earlier.
- In April–October of one fiscal year, Russian finished-steel imports to India reached ~149,000 tonnes, up from ~34,000 tonnes the previous year.
- In mid-2024 Russia’s iron & steel exports to India surged about 40% in June year-on-year.
Market position
- In recent data, Russia ranked as India’s fourth-largest source of finished steel imports (for a six-month span) with ~127,800 tonnes. mint
- While Russia’s share is growing, it hasn’t overtaken the leaders yet — countries like South Korea, China and Japan still account for higher volumes.
Price competitiveness
- Russian steel is entering the Indian market at lower cost, reportedly at least 20% cheaper than the Chinese equivalent in some cases.
- For example: Russian shipments to India were sold at ~₹46,000 per tonne (~US $555) for certain hot-rolled coil segments, at least 21% cheaper than domestic pricing.
Key Drivers
- Sanctions & trade-flows: Western sanctions on Russia after the Ukraine conflict have diverted Russian exports towards Asia, including India.
- Cost advantage: With lower freight/logistics costs (in some segments) and Russian suppliers offering discounted rates, Indian buyers are finding deals.
- Demand for specialised steel: India has increased demand for specific speciality steel (e.g., electrical sheets) where Russian suppliers are active.
Implications for India’s Steel Sector
For domestic producers
- The influx of cheaper Russian steel is a concern for Indian producers on margins and market share, especially in speciality steel segments.
- The government may face pressure to deploy safeguard duties or other trade measures. For example, recent reports suggest consideration of a 12 % temporary tariff on certain steel imports.
For trade policy
- India’s trade dynamics with Russia are deepening, but this also raises trade-policy questions about dependency, strategic sourcing, and domestic industry protection.
- There is a balancing act between securing affordable imports vs. safeguarding domestic manufacturing.
For Russian exporters
- India offers a growing outlet for Russian steel exports that may face barriers in other markets due to sanctions.
- Russia’s pivot to Asia for steel (and other commodities) is evident.
Clarification: Has Russia Become India’s Top Steel Importer?
No — despite the big growth, Russia has not yet become the top steel importer into India. Data indicate:
- In recent past, South Korea, China and Japan still lead in terms of volume of finished-steel exports to India.
- For example, for a given six-month period, Russia was fourth with ~127,800 tonnes. mint
Hence, the statement “Russia becomes India’s top steel importer” is not supported by the available data. It may reflect rapid growth or media shorthand, but the actual ranking shows Russia as significant and rising — yet not at the #1 source.
Outlook: What to Watch
- Will Russia continue to increase its share and potentially overtake other suppliers? Track upcoming fiscal-year import data.
- How will India’s domestic industry and government respond (e.g., via duties, quotas, trade investigations)?
- Whether India and Russia develop deeper trade mechanisms (including rupee/rouble settlements, logistics channels) for steel.
- Impact on domestic steel prices, margins for Indian producers, and investment decisions in the Indian steel value-chain.
- Regional/global geopolitics: sanctions, logistics, freight rates, shipping routes all influence the flow.
Conclusion
The story of Russia’s steel exports to India marks an important shift in India’s import sourcing and global trade flows. While Russia has made large inroads into the Indian steel market — driven by price advantage, supply diversions, and increasing demand — it has not yet become India’s largest steel import source. Nevertheless, its rapid rise has major implications for India’s domestic industry, trade policy and sourcing strategies. Monitoring future data will be key to assessing whether Russia may eventually overtake others and reach the top spot.
