Posted on 27 Nov 2025
India's Ministry of Steel has extended exemptions under the Quality Control Order (QCO) for the import of key stainless steel flat-rolled products, a move to secure the supply of crucial steel items while the domestic industry rushes ahead with capacity expansions, the ministry has announced.
The exemption for three Indian Standards (IS) applicable to stainless steel flat products – namely IS 6911, IS 5522 and IS 15997 – has been extended till March 2026 from December 31, 2025.
The QCO prevents steel products that are not compliant with the Bureau of Indian Standards (BIS) from entering the Indian market.
The decision, announced on November 20, follows deliberations by the ministry in response to concerns raised by industry participants and is aimed at safeguarding stakeholder interests, it said.
Firstly, many Indian steel users had already made substantial advance payments to overseas mills for 200- and 300-series stainless steel flat products, the ministry explained, adding that the decision aims to ensure uninterrupted availability of essential steel products.
This need arises as the steady rise in domestic production capacity in line with India's self-reliance objectives is creating a persistent shortage in the availability of 200- and 300- series stainless steel flat products, it noted.
The steel ministry's exemptions are expected to provide a short-term boon for Chinese stainless exporters, opening a critical four-month window to increase shipments to India and thereby alleviate domestic supply pressure in China, according to Chinese industry sources.
"This opportunity is particularly significant given the supply shortages India is currently experiencing," explained an analyst based in Wuxi. "The context for the country's heavy reliance on imports is a market where strong demand growth continues to outpace increases in domestic supply," she noted.
According to Mysteel data, India's stainless steel production grew 3.9% in 2024 to reach 4.21 million tonnes, whereas apparent consumption – factoring out inventories – rose even faster at 5.7% to top 5.06 million tonnes. This supply-demand gap, set against a per capita stainless consumption base of 3.5 kg, underscores the substantial growth potential of the Indian market.
The previous lapse of Bureau of Indian Standards certifications for Chinese stainless steel manufacturers had led to an exponential decline in exports to India since 2024. India, previously China's top export destination for stainless, fell to the second position last year and plummeted to 11th place in the first ten months of the year.
Indonesia and China were the primary sources of Indian stainless steel imports in 2024, Mysteel learned from Indian Customs data.
Indonesia was the dominant source, shipping approximately 743,900 tonnes last year and accounting for 41% of India's total, while imports from China stood at about 457,500 tonnes, representing a 25% share.
However, China's stainless steel exports to India in the first ten months of this year fell to some 147,400 tonnes, marking a spectacular decrease of 267,000 tonnes or 64.4% year-on-year, data from General Administration of Customs China (GACC) show.
Despite the extended reprieve, industry analysts in Shanghai caution that this is only a temporary solution for the tumble in Chinese stainless shipments to the Indian market. For Chinese mills, securing BIS certification remains an unavoidable long-term imperative for sustained access to India, Mysteel Global was told.
Source:Mysteel Global
