Steel prices have remained under pressure in recent weeks despite safeguard measures introduced to stabilise the market. According to TV Narendran, Managing Director and CEO of Tata Steel, the sector is facing subdued demand conditions, although a rebound is anticipated once the monsoon season ends.
Narendran highlighted that construction activity, one of the largest drivers of steel consumption, typically slows during the monsoon period due to weather-related disruptions. As a result, demand for long steel products, widely used in infrastructure and housing, has been weaker than expected. Flat steel products, primarily consumed by the automotive and manufacturing sectors, have also seen softer realisations owing to cautious buying and global headwinds.
Despite the current weakness, Narendran remains optimistic about the outlook for the industry. He noted that post-monsoon months generally witness an uptick in infrastructure projects and housing construction, both of which could drive a rise in demand. Additionally, government-led investments in highways, railways, and urban development are expected to provide a further boost to the steel market in the second half of the financial year.
On the global front, oversupply concerns and muted demand from major economies have weighed on international steel prices, influencing domestic markets as well. However, Narendran stated that India’s long-term fundamentals remain strong, with the country poised to become the world’s growth engine for steel consumption, driven by rapid urbanisation and industrial expansion.
Industry analysts believe that while safeguard measures offer temporary relief, the real recovery will depend on sustained demand growth and improved global conditions. As the monsoon retreats and large-scale construction resumes, steel prices are expected to firm up, providing much-needed stability for producers and ancillary industries alike.
