Why India's steel demand is defying global weakness
India’s steel prices are rising despite weak global markets, supported by infrastructure spending, manufacturing growth and higher input costs. While Chinese oversupply pressures international prices, robust domestic consumption and capacity utilisation underpin India’s outlook, with cheaper imports remaining a key risk.
India's steel market has outperformed global trends, with domestic prices rising sharply despite weak overseas markets. This divergence stems from India's demand-driven growth, driven by infrastructure spending, manufacturing expansion, construction, and higher production costs, while global markets grapple with excess supply and weak demand, especially from China.
Unlike 2021-22, the current rise is primarily fueled by domestic factors like infrastructure projects, initiatives such as Make in India and PLI schemes, and higher steel costs. India's demand outpaces its growing capacity, maintaining healthy utilization rates. While China's property sector slowdown and low housing starts contribute to weak international prices, China's continued high production and exports exacerbate the situation.
Other major producers, such as Japan, South Korea, and Europe, also supply substantial steel to the global market. However, India's robust domestic consumption, supported by ongoing infrastructure and industrial development, is expected to sustain its steel market's strength in the coming years.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
