Uzbekistan eyes Indian steel to slash import logistics costs

Uzbekistan's steel industry is turning to India as a strategic source to reduce the substantial logistics expenses associated with importing from China, according to an industry official. The Central Asian nation currently imports approximately 1 million tonnes of steel annually, including TMT bars, predominantly from China at a logistics cost of up to USD 100 per tonne on top of the material itself.

Shipping steel from China to the landlocked country via sea routes adds considerable expense. India offers a geographically advantageous alternative, with shorter transit routes that would significantly reduce transportation costs, the official noted.

To formalize this partnership, the Uzbekistan Metallurgy Association has signed a Memorandum of Understanding with the Indian Steel Association (ISA). The agreement establishes a framework for bilateral cooperation spanning manufacturing practices, technology transfer, environmental standards, and sustainable industry development.

"Both associations will work towards facilitating interaction and advancing mutual understanding among the steel industries of India and Uzbekistan," the official said, highlighting plans to improve logistics coordination and strengthen commercial relationships between the two nations' steel sectors.