India's steel sector booms by 11% in March, outpaces global peers

India's crude steel production surged 11% year-on-year in March 2026, reaching 15.3 million tonnes and outperforming global peers. For FY26, output grew 11% to 167.8 million tonnes, contrasting with a global slowdown and contraction in China.

India's steel sector continued to outpace its global counterparts in March 2026, even as total worldwide output struggled to maintain its year-on-year (YoY) pace. According to a report by Centrum, domestic crude steel production surged by 11 per cent annually, reaching 15.3 million tonnes, while China and other major producing nations saw sustained contractions.

The global steel landscape showed a significant dip in March, with total output recorded at approximately 159.9 million tonnes. This figure represented a 4 per cent decline compared to the same period last year. China, the world's largest producer, contributed 87 million tonnes to the total but faced its eleventh consecutive month of YoY contraction with a 6 per cent drop. While global production rose 12 per cent on a month-on-month (MoM) basis, this was largely attributed to a lower base in February.

India's FY26 Performance

India's performance for the full financial year 2026 reflected steady momentum. The report noted that in FY26, the country's crude steel production grew by 11 per cent YoY to reach 167.8 million tonnes. This growth came at a time when the rest of the world remained weak, falling 2 per cent annually to 72.9 million tonnes. "China's crude steel production remained under pressure, whereas India continued to outperform global peers," the report stated.

Steel Price and Market Sentiment

Price movements during April remained mixed across different regions. While global steel prices strengthened in China, the United States, and Europe, the Indian domestic market experienced volatility after initial hikes. Domestic hot rolled coil (HRC) prices rose by roughly 3 per cent MoM and 13 per cent YoY. However, the report observed that prices partially corrected during the month due to weak demand, slower trading activity at elevated price levels, and cautious market sentiment following the US-Iran ceasefire announcement.

Raw Material Segment Trends

The raw material segment also displayed varied trends throughout April. "Australian iron ore prices increased ~2% MoM and ~9% YoY. Domestically, NMDC raised lump and fine ore prices by Rs 200/tonne each during early May, marking the fourth consecutive price hike since 9 January 2026," the report highlighted.

In the coal sector, Australian coking coal prices saw a recovery of 2 per cent during the month after a sharp correction in March. Conversely, South African non-coking coal prices declined 3 per cent as demand shifted toward domestic coal.

Near-Term Outlook

"Going ahead, we believe firm pricing trend of key steelmaking raw materials, expectations of tighter flat steel supply amid maintenance shutdowns at key integrated steel plants and likely uptick in pre-monsoon construction activities should support near-term domestic steel prices," the report noted. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)