India has sharply reduced Chinese stainless steel exports by tightening its Bureau of Indian Standards certification renewal process. The decision has reshaped regional trade flows and unsettled market participants.

As a result, China’s stainless steel shipments to India fell 64.4 per cent year on year. Exports dropped to 147,400 tonnes during the first ten months of 2025. Traders described the decline as steep and unexpected.

However, many market participants viewed the move as a new technical trade barrier. They said the process slowed renewals and raised compliance uncertainty. Consequently, Chinese mills struggled to plan shipments with confidence.

Meanwhile, leading Chinese producers such as Taigang and Tsingshan already held earlier BIS approvals. Despite this, exporters faced delays and tighter scrutiny under the revised process. Therefore, shipments continued to weaken through the year.

At the same time, industry sources said India aimed to protect its domestic stainless steel sector. The government wants to create room for capacity additions and new investments. Moreover, officials want to reduce dependence on low-cost imports.

Furthermore, India’s stainless steel consumption remained strong despite trade restrictions. Consumption reached 5.06 million tonnes in 2024, according to industry estimates. However, per capita usage stayed low compared with global averages.

As a result, analysts see significant long-term growth potential in the Indian market. Rising urbanisation and infrastructure spending continue to support demand. Additionally, lifestyle changes drive higher stainless steel usage.

In contrast, Indonesia strengthened its position as India’s largest stainless steel supplier. Indonesian mills filled the supply gap left by China. Consequently, Indonesia shipped 743,900 tonnes to India in 2024.

Now, Indonesia dominates India’s stainless steel import market by a wide margin. Traders said Indonesian producers benefit from scale and competitive pricing. Moreover, supply chains between the two countries remain stable.

Overall, market participants believe India uses BIS rules to support an import substitution strategy. Therefore, they expect Chinese exports to recover slowly. Many traders see no quick turnaround under current policies.