Steel consumption in India is set to grow by 9% each in both 2025 and 2026, driven by increasing demand from all sectors using the metal, the World Steel Association said on Monday.
Globally, however, the demand is expected to remain flat at around 1.75 billion tonnes in 2025, the industry body noted. In 2026, the global demand is expected to rise by around 1.3% year-on-year to 1.77 billion tonnes.
While the World Steel Association generally releases two outlooks each year, it had postponed releasing an outlook in April, saying the imposition of tariffs by the US administration could render its outlook outdated.
India is the second-largest producer of steel in the world. In 2024, the country produced 149.6 million tonnes of steel, up 6.3% from the previous year.
India was the only country among the top five producers – which includes China, Japan, United States and Russia - to see a year-on-year growth in production during the year, the association noted.
The demand for steel in the country in 2026 will be 75 million tonnes more than what it was in 2020, it said.
The National Steel Policy of 2017 envisages having a production capacity of 300 million tonnes by 2030; India currently has a production capacity of around 200 million tonnes.
Most major steel producers are aggressively expanding capacities to cater to the expected growth in demand, which is expected to be underpinned by infrastructure and housing projects.
Globally, the sluggishness in the demand for steel will largely be on account of China, which is the world’s largest producer as well as consumer of steel. The demand in China is expected to fall by 2% in 2025, and 1% in 2026.
“This forecast represents a moderation of the downward trend observed since 2021, driven primarily by the ongoing downturn in the housing market,” the association said. End
Globally, however, the demand is expected to remain flat at around 1.75 billion tonnes in 2025, the industry body noted. In 2026, the global demand is expected to rise by around 1.3% year-on-year to 1.77 billion tonnes.
While the World Steel Association generally releases two outlooks each year, it had postponed releasing an outlook in April, saying the imposition of tariffs by the US administration could render its outlook outdated.
India is the second-largest producer of steel in the world. In 2024, the country produced 149.6 million tonnes of steel, up 6.3% from the previous year.
India was the only country among the top five producers – which includes China, Japan, United States and Russia - to see a year-on-year growth in production during the year, the association noted.
The demand for steel in the country in 2026 will be 75 million tonnes more than what it was in 2020, it said.
The National Steel Policy of 2017 envisages having a production capacity of 300 million tonnes by 2030; India currently has a production capacity of around 200 million tonnes.
Most major steel producers are aggressively expanding capacities to cater to the expected growth in demand, which is expected to be underpinned by infrastructure and housing projects.
Globally, the sluggishness in the demand for steel will largely be on account of China, which is the world’s largest producer as well as consumer of steel. The demand in China is expected to fall by 2% in 2025, and 1% in 2026.
“This forecast represents a moderation of the downward trend observed since 2021, driven primarily by the ongoing downturn in the housing market,” the association said. End
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