India’s steel shortage forces pipe makers to rely on imports

India's steel industry is failing to produce enough high-grade steel for oil and gas pipelines, forcing pipe maker Jindal SAW to source 35, 40% of its specialised steel from South Korea and China, managing director Sminu Jindal told Livemint. Indian mills are developing grades such as X100, but volumes remain too small to be commercially viable, keeping prices high.

India became a net importer of finished steel in Q1FY27, with imports up 49.2% year-on-year to 2.064 million tonnes, provisional Joint Plant Committee data showed. Jindal said for the pipe maker, importing and exporting saves on duties and helps the business survive, adding that she has set no target to reduce import dependence because availability is beyond her control.

To manage costs amid the West Asia conflict, Jindal SAW plans capital expenditure of Rs 500, 600 crore for FY27, the president and head of treasury told analysts. Jindal expects global pipe demand to grow 5, 8%, faster than the broader economy, with potential new opportunities from West Asian infrastructure rebuilding.