Steel Prices Hit Five-Year Low in India in 2025 Amid Global Trade Pressures

Steel prices in India touched their lowest level in five years during 2025, even as domestic demand and production remained firm, highlighting the impact of global trade disruptions on the sector. The assessment was shared by Tata Steel CEO and Managing Director T V Narendran, who said international protectionist measures and excess global supply created sustained pricing pressure.

Addressing employees during a New Year event, Narendran explained that steel has increasingly become a protected commodity across borders. Several countries have introduced tariffs and trade barriers to shield domestic industries, limiting free movement of material globally. As a result, steel producers worldwide are facing volatility despite stable consumption in their home markets.

Narendran said Tata Steel’s Indian operations continued to perform steadily, supported by infrastructure spending and demand from construction and manufacturing sectors. However, the company’s European business faced pressure due to duties imposed on steel exports from Europe and the United States, which affected margins and export competitiveness.

A key global factor impacting prices has been the slowdown in China’s economy, particularly in the steel-consuming construction sector. China exported more than 100 million tonnes of steel for the second consecutive year, almost equal to India’s annual steel production. Although Chinese steel did not enter India in large volumes, the surplus flooded global markets, making exports difficult for Indian producers.

Despite strong domestic demand and supply, Indian steel prices remained below international levels for most of 2025. Capacity additions across the industry added to near-term oversupply, further weighing on prices. As a result, steel prices in India slipped to their lowest point in the past five years.

On the operational front, Narendran said Tata Steel delivered a stronger financial performance than in previous years, supported by efficiency improvements and cooperation between management and unions. He noted limited scope for volume expansion at the Jamshedpur plant, where the focus is on value-added products.
Investments are underway across Tata Steel’s network, including capacity expansion at Kalinganagar, upgrades at Meramandali and Neelachal, and new facilities such as the Combi Mill and Tinplate expansion. India remains a key long term growth market for steel producers.