【SMM Analysis】Southeast Asia Steel 2026: Supply Surge, Trade Shifts & The New Price Order

The Ministry of Steel of India, through Special Notification No. 720 in the Gazette of India, revised the 2025 Domestic Manufactured Steel Products Policy, replacing the original requirement of a domestic value addition ratio of no less than 50% for products under Customs Tariff Codes 7301, 7302, 7303, and 7308-7326 with a stricter "melting and casting" condition, covering railway materials, steel structures, storage tanks, containers, steel wire products, fasteners, and other steel products. For related products to be eligible for procurement by Indian government agencies, state-owned enterprises, and government-funded projects, the steel used must undergo melting and casting into the first solid form within India, and the final product must be manufactured entirely within India. This regulation is expected to restrict the participation of imported finished products and products processed and manufactured in India using imported steel billets, slabs, or rolled steel in public procurement, and shift demand to India's domestic steel mills. However, this measure only applies to government procurement and does not constitute a general restriction on steel imports in the private market.

India’s Ministry of Steel has amended the Domestically Manufactured Iron & Steel Products (DMI&SP) Policy-2025 through G.S.R. 720(E), replacing the earlier 50% domestic-value-addition requirement with a stricter “Melt & Pour” condition for products under HS codes 7301, 7302, 7303 and 7308–7326, covering categories including railway material, steel structures, tanks, containers, wire products, fasteners and other fabricated steel articles. To qualify for procurement by Indian government agencies, state-owned enterprises and government-funded projects, the steel must now be melted and cast into its first solid form in India, and the final product must be manufactured entirely within the country. The rule is expected to reduce opportunities for imported finished products and India-made goods produced from imported semi-finished or rolled steel in public tenders, shifting demand towards Indian steelmakers; however, it is a government-procurement measure and does not impose a general restriction on private-sector steel imports.