Archive · 21 Nov 2025
Indian Steel Industry Faces Paradox: Rising Demand, Falling Prices
Even though people in India are using more steel than ever, the price of steel is going down.
This is because there is more steel being made and sold, but not enough people are buying it.
This is making it hard for steel companies to make a lot of money, and they are worried that they might not be able to afford to make more steel in the future.
Demand for steel in India is surging, with projected growth of around 9% annually until 2026
Major producers are expanding capacity, but prices and demand are moving out of sync
Domestic flat steel prices have fallen to a five-year low, impacting margins
Steel companies question if current margins justify mega expansion plans
The industry is concerned about increased supplies, imports, and limited trade opportunities
- Who
- The Indian steel industry
- What
- Is facing a paradox of rising demand and falling prices
- When
- Currently and in the near future
- Where
- India
- Why
- Due to increased supplies, imports, and limited trade opportunities
Optimistic View
Cautious View
Demand Growth
Optimistic View
Demand is projected to grow annually until 2026
Cautious View
Demand may not be strong enough to support prices
Price Movement
Optimistic View
Prices may see an uptick in the second half of the financial year
Cautious View
New capacities and limited trade opportunities may keep prices in check
- Projected Annual Growth
- Around 9% until 2026
- Estimated Capacity by FY26
- 216-217 million tonnes per annum
- Five-Year Low Price
- Rs 47,000 per tonne in October 2025
- Average EBITDA per Tonne
- Around Rs 6,000-10,000
- Required EBITDA for Capex
- Minimum of Rs 17,000 per tonne
