Uzbekistan Explores Steel Imports From India to Reduce Logistics Expenses

Uzbekistan is exploring options to import steel from India as part of a strategic effort to reduce logistics costs, according to an industry official who spoke on Tuesday. The landlocked Central Asian nation currently relies heavily on China for its steel requirements.

Data indicates that Uzbekistan imports approximately 1 million tonnes of steel annually, including TMT bars, from China. The current logistics cost for shipping steel from China to Uzbekistan via sea routes reaches up to $100 per tonne, which is added to the actual cost of the material. By turning to India, the country aims to utilize a shorter, alternative route to cut down these expenses.

To formalize this intent, the Uzbekistan Metallurgy Association has signed a Memorandum of Understanding (MoU) with the Indian Steel Association (ISA). According to industry representatives, the agreement is designed to foster collaboration across several areas, including manufacturing, technology, environmental practices, sustainable growth, and logistics. It also aims to facilitate interaction to advance mutual understanding between the steel industries of both nations.

This development aligns with broader government efforts encouraging Indian steel manufacturers to explore new international markets and boost exports. India currently holds the position of the world's second-largest steel producer.

Market research data from BigMint indicates that India's total steel exports reached 9.1 million tonnes (MT) in the 2025-26 period. Key export destinations during this timeframe included the European Union, Vietnam, and the Middle East, with a significant share going to the United Arab Emirates.

The Indian Steel Association serves as the primary policy advocacy body for the country's steel sector. Its membership comprises major domestic producers such as Tata Steel, JSW Steel, Jindal Steel, and AMNS India.

"The initiative by Uzbekistan to source steel from India highlights how supply chain economics and logistics costs dictate international trade routes. For Indian steel producers, expanding into Central Asia through institutional frameworks like the MoU with the Indian Steel Association opens up viable alternative markets beyond traditional destinations like the EU and the Middle East. Optimizing logistics and leveraging bilateral trade associations will be key factors for Indian exporters looking to secure a long-term footprint in landlocked economies." — Dr. Shishir Gupta, Founder & CEO, StartupLanes