India’s steel industry continues to show resilience despite headwinds in the construction sector. Recent figures reveal that scrap steel usage in domestic mills rose by 15 per cent in the first seven months of 2025 compared with the same period in 2024, underscoring steady industrial activity and sustained demand for steel.
The increase in scrap consumption reflects the sector’s adaptability in sourcing raw materials and optimising production efficiency. Industry experts note that while construction, a key driver of steel demand, has witnessed a temporary slowdown, other sectors such as manufacturing, infrastructure maintenance, and industrial projects are helping balance demand. The use of scrap steel is also aligned with sustainability goals, reducing reliance on virgin raw materials and lowering carbon emissions.
Market analysts suggest that the upward trend in scrap utilisation highlights both the growing emphasis on circular economy practices and the robust health of steel-consuming industries. Even with higher input costs and global market uncertainties, Indian mills are maintaining strong output levels, supported by government-led infrastructure spending and steady exports.
For the long term, the resilience of steel demand is seen as a positive indicator for India’s economic momentum. Expansions in renewable energy projects, warehousing, logistics hubs, and industrial corridors are expected to continue driving consumption. The integration of recycled steel into mainstream production not only strengthens supply security but also reinforces the industry’s transition towards greener manufacturing.
While challenges such as fluctuating raw material prices and subdued construction growth persist, the industry outlook remains optimistic. Stakeholders believe that steel’s role as the backbone of industrial and infrastructure development will ensure sustained demand, making it a key pillar in India’s growth trajectory.
