INDIAN STEEL SECTOR OUTLOOK 2025: PRICE MOVEMENTS, INPUT VOLATILITY, AND STRATEGIC SHIFTS
- Credit Rating Agency in India
- Industry Report
- INDIAN STEEL SECTOR OUTLOOK 2025: PRICE MOVEMENTS, INPUT VOLATILITY, AND STRATEGIC SHIFTS
The Indian steel industry, a vital pillar of infrastructure and industrial growth, experienced significant price corrections and structural adjustments over the past two years, driven by strong domestic demand and changing supply, trade, and financial dynamics. Global raw-material markets, especially coking coal and iron ore, eased from peaks seen in 2022-23, but volatility persists, causing margins to be sensitive to feedstock cost fluctuations.
Global trade challenges continue to influence the sector. The reimposition of a 25% U.S. steel import tariff under Section 232, the EU’s tightened import quotas, and the Carbon Border Adjustment Mechanism (CBAM) set to begin in 2026 may restrict export opportunities. Consequently, more output may be redirected toward the domestic market, reinforcing reliance on internal demand.