Weak exports and rising imports weigh on steel prices
The current decline is largely attributed to weak export demand, rising imports, and an oversupply in the global market. India’s steel exports have fallen sharply, pressured by aggressive export pushes from countries like China, while imports are still active, despite several measures introduced by the government. Falling prices amid rising imports is a matter of concern as inbound shipments are increasing despite several measures introduced by the government.
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Steel ministry to hold open house
Taking a note of the situation, the Ministry of Steel has called for an “open house” to discuss issues related to steel imports with industry stakeholders on October 27 in the national capital. The Reserve Bank of India (RBI) has also noted that steel imports have seen a surge, largely driven by lower import prices. It has also called for policy support to boost the competitiveness of domestic steel production.
Steel imports rises
In September 2025, India imported 0.79 million tonnes (MT) of finished steel, up from 0.69 MT in August, marking the country’s sixth consecutive month as a net steel importer. Imports from Korea, Russia, and Indonesia increased, while shares of China, Japan, Vietnam, Thailand and Taiwan declined compared with September 2024.
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During H1, FY26, India remained a net importer, with inbound shipments exceeding exports by 0.47 MT. This is despite a 40% rise in export volumes to 4.43 MT. Interestingly, while finished steel prices have plunged, raw material costs have not seen a corresponding decline.
Iron ore prices remain quite stable at around Rs 4,800-5,000/tonne, which is a one-year low and coking coal is trading near $ 205/tonne CFR (cost and freight), a one-month low. As per BigMint, mill margins are likely to come under pressure in the October-December period, given high input costs and weak realisations.
It added that steel prices are expected to stay subdued in the near term due to high inventories, sluggish demand, and seasonal weakness, although further corrections could trigger production cuts in the coming months.