Summary:

With domestic demand reaching 9% year over year in May 2026 and 8.7% in FY26 thus far, India's steel industry is exhibiting strong development momentum. According to Kotak Institutional Equities, since demand growth continues to outperform capacity expansions, capacity utilisation is predicted to remain around 90% over the medium term. After four years of double-digit growth, steel demand increased by 7.6% in FY26, demonstrating the robustness of the market. While imports increased to 0.7 million tonnes, exports increased by 30% year over year to 0.5 million tonnes. Urbanisation, manufacturing growth, and infrastructure development are important factors that influence consumption. Price trends are still inconsistent, with HRC remaining comparatively constant and rebar falling. Higher trade prices could counteract rising coal and iron ore costs and help further improvements in margins.

Source: IBEF

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