Domestic hot-rolled coil steel prices in India rose 4.2% over the past month to Rs 56,500 per tonne, as construction activity picked up sharply with the start of the new fiscal year and government infrastructure agencies began placing large orders for structural steel. The price increase reflects both demand-side strength and a moderation in imports from China, which had been undercutting domestic producers for much of H2 FY26.
The National Highways Authority of India, Indian Railways and urban development projects collectively require over 20 million tonnes of steel annually, and procurement activity typically accelerates in Q1 of each fiscal year as ministries spend against fresh budget allocations. The union budget's Rs 15 lakh crore capex allocation for FY27 is expected to sustain elevated steel demand throughout the year.
India's crude steel production grew 9.2% year-on-year to reach 148 million tonnes in FY26, making India the world's second-largest steel producer behind China. JSW Steel, Tata Steel and SAIL have all announced major capacity expansion plans, with the industry expected to add 50 million tonnes of new capacity by 2030. Export markets in Southeast Asia and the Middle East have also been absorbing Indian steel at competitive prices given the rupee's relative stability.
