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India Steel Prices Hit 5-Year Low: Margins Squeezed
1 Dec
Summary
- Indian hot-rolled coil steel prices reached a five-year low.
- Top steel producers are experiencing weakened earnings.
- A significant recovery for the industry is not expected before 2027.
India's steel industry is currently facing significant pressure as the price of hot-rolled coil (HRC) steel has plummeted to a five-year low. This sharp decline has led to squeezed profit margins for major producers, with earnings weakening considerably. The outlook suggests that a substantial recovery for the sector is unlikely to materialize before 2027, leaving the industry in a challenging phase.
Despite the current slump, the sector is drawing support from several factors. Steady domestic demand provides a baseline, while stable raw material costs help to somewhat alleviate cost pressures. Furthermore, the industry is hopeful for the continuation of safeguard duties, which are crucial in preventing the influx of dumped steel products and maintaining a more stable market environment.
As of mid-November 2025, Indian HRC prices have fallen into the range of INR46,000 - INR47,000 per metric tonne, a notable drop from earlier highs. This price trajectory underscores the severity of the current downturn and the challenges the world's second-largest crude steel producer faces.
