Tel :
Tel :
At the recent Mjunction conference held in Mumbai, Girishkumar Kadam, Senior Vice President and Head of Corporate Ratings at ICRA, provided an outlook on the Indian steel market. He stated that Indian steel demand is expected to continue its steady growth. This assessment is based on observations of India's economic development trends, particularly its accelerating urbanization, consistently stable government capital expenditure, and the continued benefits of its demographic dividend, which together form the fundamental basis supporting steel consumption. B23HS085 oriented electrical steel, However, the analysis also pointed out that the country's market remains highly sensitive to macroeconomic fluctuations.
From a specific forecast perspective, driven by continued activity in the construction sector and steady capacity expansion, India's steel consumption is expected to achieve a year-on-year growth of 7-8% in the 2025/2026 fiscal year. B23HS085 oriented electrical steel, Analysis of the demand structure indicates that the construction and infrastructure sectors continue to dominate, accounting for approximately 60% of total steel consumption; industries such as automotive and engineering machinery also maintain significant shares.
Furthermore, the industry anticipates an improvement in India's steel capacity utilization rate this fiscal year, with the increased demand expected to gradually absorb the new supply.
However, challenges remain on the path to green transformation. Industry insiders point out that scrap steel resources are becoming a key element in India's green steel strategy, but ensuring a sufficient and stable supply remains a core challenge for the industry.
On the other hand, cost pressures continue to be evident. Sandeep Kumar, Vice President of Raw Materials at Tata Steel, emphasized at the meeting that the high dependence on imported coking coal is putting significant cost pressure on Indian steel companies. B23HS085 oriented electrical steel, In addition, the increasingly fierce bidding for domestic iron ore mines has driven up raw material procurement costs, further squeezing companies' profit margins.
According to a research report by MP Financial Advisory Services, India has achieved its annual crude steel production capacity target of 205 million tons in the 2024/2025 fiscal year. The country is now steadily progressing towards its strategic goal of 300 million tons of annual capacity by the 2030/2031 fiscal year, a development that will continue to shape the competitive landscape of the global steel industry.
