Domestic Steel Prices Surge Up to 25% Amid Strong Demand and Import Safeguards

India’s steel sector is witnessing a notable price surge, with domestic steel prices rising between 18 and 25 per cent over the past three months. This upward momentum is being driven by a combination of strong local demand and the implementation of safeguard duties on imports, which have helped stabilise the market despite global uncertainties.

Prices of key steel products have shown a significant increase. Hot-rolled coils are currently priced at around ₹55,900 per tonne, compared to approximately ₹47,300 in the previous quarter. Similarly, primary rebar prices have climbed to nearly ₹59,800 per tonne from about ₹47,600, reflecting steady demand across infrastructure and construction sectors.

The price resilience comes at a time when global disruptions, including geopolitical tensions in the Middle East, are impacting supply chains. While such developments could potentially increase steel imports into India, domestic demand has remained strong enough to support price levels. At the same time, India’s steel exports to the Gulf region may face short-term pressure, though this is expected to be offset by robust consumption within the country.

India continues to be the world’s second-largest steel producer and consumer, and demand outlook remains positive. Industry estimates suggest that steel demand will grow by around 9 per cent in both 2025 and 2026, supported by ongoing infrastructure projects, real estate activity and industrial expansion.

Production and consumption data further reinforce this trend. Crude steel production has recorded double-digit growth, while overall consumption has also increased steadily, indicating sustained demand across sectors.

Market analysts believe that domestic steel companies with strong balance sheets, higher raw material integration and greater exposure to the local market are well positioned to benefit from the current price cycle. The safeguard duty has provided a cushion against volatile global prices, allowing Indian steelmakers to maintain pricing power.

Looking ahead, the sector is expected to remain stable, supported by policy measures, infrastructure investments and consistent domestic demand, positioning India’s steel industry for continued growth.