- Imports of Chinese coils with widths of 600 mm or above reach record high in Jun’26
- Imports key for cold-rolled, speciality grades; hot-rolled, 200-series steel lead domestic output
India’s stainless steel imports from China increased sharply by 26% y-o-y in the first half of 2026, supported by temporary exemptions from Quality Control Orders (QCOs), strong domestic demand, and supply constraints in certain product segments. According to data analysed by Mysteel based on India’s Ministry of Commerce statistics, India’s total stainless steel imports rose 4.6% y-o-y to around 833,400 t during H1CY’26. Chinese shipments increased 26% y-o-y to 140,900 t, reversing the sharp decline witnessed in 2025.
Chinese imports recover amid QCO exemption
India’s stainless steel imports from China had declined significantly in 2025, falling 54.5% y-o-y to around 208,000 t, amid tighter BIS certification and QCO requirements. However, temporary exemptions introduced by the Indian government have eased compliance requirements for certain stainless steel products, supporting a recovery in Chinese shipments during 2026.
The Ministry of Steel has implemented temporary exemptions covering products under standards including IS 6911, IS 5522, IS 15997, and IS 14650. The latest exemption applies to eligible shipments with a Bill of Lading (B/L) dated before 26 October 2026, providing additional flexibility for overseas suppliers.
Chinese coil imports reach record monthly level
The recovery has been particularly visible in stainless steel coils with widths of 600 mm or above, which typically account for around 80% of India’s stainless steel imports from China.
Imports of these Chinese coils reached approximately 96,800 t during H1CY’26, up 6.5% y-o-y. June imports alone surged to around 35,500 t, marking the highest monthly level on record, according to the report.
Domestic supply constraints support imports
India’s domestic supply-demand imbalance has also contributed to the rise in imports. Stainless steel consumption continues to expand, supported by infrastructure development and growth in manufacturing sectors such as automobiles, appliances, kitchenware and construction machinery.
Demand is also emerging from newer sectors, including solar power, energy storage systems (ESS) and hydrogen-related applications. However, domestic stainless steel production capacity has not expanded at the same pace as consumption.
India’s stainless steel production capacity is estimated at around 7.5 million tonnes (mnt)/year, with industry utilisation reportedly at 60-65%. Raw material constraints, including India’s dependence on overseas nickel and chromium resources, continue to add pressure on domestic producers.
Product mix remains a key factor
The domestic industry’s product mix also contributes to India’s import dependence. Local producers have a relatively higher share of hot-rolled, thick-gauge and 200-series stainless steel production, while imports remain important for thin cold-rolled products and certain specialty grades.
The Indian government had previously cited insufficient domestic availability of 200- and 300-series stainless steel sheets as one of the factors supporting the extension of QCO exemptions.
QCO expiry and AD investigation remain key variables
The future direction of Chinese stainless steel imports will depend heavily on India’s trade and quality-control policies. The current QCO exemption is linked to shipments made before 26 October, and any further extension or tightening of the regulations could significantly influence import flows.
Meanwhile, India’s Directorate General of Trade Remedies (DGTR) is conducting an anti-dumping investigation into 300- and 400-series cold-rolled stainless steel sheets from China, Indonesia and Vietnam. The investigation, launched in October 2025, is yet to result in a definitive anti-dumping measure.
Domestic capacity expansion could limit imports
Expansion of domestic stainless steel capacity is another factor that could influence future import requirements. Jindal Stainless (JSL) commissioned a stainless steelmaking facility with an annual capacity of 1.2 mnt at PT Glory Metal Indonesia (PT GMI) in March 2026, taking its annual melting capacity to around 4.2 mnt.
As domestic capacity and product availability improve, India’s reliance on imported stainless steel could gradually moderate, particularly if local producers address supply gaps in cold-rolled and speciality grades.
Outlook
India’s stainless steel imports are expected to remain elevated in the near term, supported by robust domestic demand, supply constraints in certain product categories and the temporary QCO exemption. However, the pace of import growth could moderate if QCO requirements are tightened after the exemption period, the ongoing anti-dumping investigation results in trade-remedy measures, or domestic producers expand capacity and improve their product mix.
Chinese shipments are therefore likely to remain closely linked to India’s QCO/BIS policy, domestic supply availability, AD investigation developments and downstream demand in the coming months.
Note: This article is published as part of a content exchange agreement between SteelDaily and BigMint.
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