India Steel Capacity Utilisation to Stay Above 90% Through FY29
Steel News | 2026-08-31 06:41:34
India’s steel industry is expected to maintain capacity utilisation above 90% through FY2029, supported by strong domestic consumption and infrastructure activity, according to a recent research report published by Kotak Institutional Equities.
By Paul Ploumis
SEATTLE (Scrap Monster): India’s steel industry is expected to maintain capacity utilisation above 90% through FY2029, supported by strong domestic consumption and infrastructure activity, according to a recent research report published by Kotak Institutional Equities.
The brokerage expects domestic steel demand to expand at nearly 7% annually between FY2026 and FY2029, significantly higher than the anticipated pace of capacity additions. It must be noted that domestic steel consumption grew 7.8% year-on-year in the first part of FY2027, following 7.7% growth in FY2026.
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Steel exports climbed 35% year-on-year to 2.3 million tons, while imports rose 36.7% to 2.8 million tons. The report noted that ongoing anti-dumping investigations could help limit import pressure.
Long steel prices have recovered strongly after their June-July decline. Rebar prices in both primary and secondary markets increased by about INR 5,600 per ton, reaching INR 53,900 and INR 47,900, respectively. The easing monsoon and improving construction activity could provide further support to prices, the report said. Meanwhile, domestic HRC prices stood around Rs 58,800 per ton.
Steel margins may weaken in the second quarter of FY2027, but recent price gains and better operating leverage are expected to support recovery in the second half.
POLL
What is expected to be the main driver of India’s steel industry through FY2029?
Frequently Asked Questions
- How long is India’s steel capacity utilisation expected to remain above 90%?
India’s steel capacity utilisation is expected to remain above 90% through FY2029. Strong domestic consumption, infrastructure development and demand growth are expected to keep utilisation levels high relative to new capacity additions.
- What is driving India’s steel demand growth?
Robust infrastructure and industrial activity are the main demand drivers. Domestic steel consumption grew 7.8% year-on-year during the initial period of FY2027, following 7.7% growth in FY2026. Demand is projected to expand at nearly 7% annually through FY2029.
- How have Indian steel prices performed recently?
Long steel prices have recovered significantly after declining during June and July. Primary rebar prices reached around INR 53,900 per ton, while secondary rebar prices stood at approximately INR 47,900 per ton. HRC prices were around INR 58,800 per ton.
