India: Stainless semi-finished steel imports rise on Indonesian slab inflows due to increased commercial viability

• Slab imports dominate amid structural shift in procurement
• Lower slab prices improve viability for flats producers 

India’s stainless semi-finished steel imports increased 16% y-o-y to ~0.71 mnt in April-February FY’26 compared with ~0.44 mnt in the corresponding period last year, driven largely by higher slab inflows.

Slabs dominate import mix

Slabs accounted for nearly 0.66 mnt, contributing over 98% of total imports, indicating a clear structural shift toward slab-based rolling over billet procurement.

Indonesia anchors slab supply

Indonesia remained the sole supplier of slabs, reinforcing its dominance in India’s semi-finished trade. This is supported by its large-scale melting capacities and cost-efficient conversion structure.

For Indian flats producers, slab imports remain commercially viable amid firm nickel prices and elevated alloy surcharges. Instead of increasing domestic melting-exposed to ferro alloy volatility and high power costs-mills are increasingly relying on imported slabs to optimise rolling margins and manage working capital efficiently.

Market participants also noted that slab imports are increasingly part of structured or intra-group trade flows, ensuring supply stability and reducing exposure to raw material price fluctuations.

Price advantage supports imports

Stainless steel slab import prices averaged around $1,755-1,780/t during April-February of FY25 compared with lower levels of $1,630–1,635/t in April-February FY26. The decline in prices improved the commercial viability of slab imports, encouraging Indian mills to prefer slabs.

Billet imports decline sharply

In contrast, India’s stainless steel billet imports declined by ~50% y-o-y to 54,000 t during the review period compared with around 0.1 mnt last year. Imports from Indonesia also dropped significantly, reflecting reduced demand for billets amid sufficient domestic availability and a shift in production preference.

Domestic production rises

India’s stainless steel production rose by 15% y-o-y to 2.55 mnt in April-January of FY26, compared with 2.22 mnt in the same period of the previous fiscal, supporting domestic supply for long products.

Outlook

Slab imports are expected to remain elevated in the near term as Indonesian capacities continue to expand. Meanwhile, billet imports are likely to stay subdued, reflecting adequate domestic supply and a sustained structural shift toward slab-led flat product manufacturing.