Tata Steel said Indian steelmakers view the rapid growth of Chinese steel exports as the most serious threat to domestic profitability, as weak demand in China continues to push large volumes into overseas markets at very low prices.

The company noted that India’s steel sector is largely driven by private producers that rely on internal cash flow to finance new capacity and cannot absorb sustained losses. By contrast, Chinese mills have historically benefited from state support that allows loss-making output to persist.

As a result, China’s export behaviour is playing an increasingly central role in Indian producers’ market risk assessments, surpassing concerns over decarbonisation costs and technology decisions.