Steel industry demand remains subdued through September, largely due to the seasonal slowdown caused by heavy monsoon rains and associated disruptions. However, industry leaders expect a sharp revival from October, signalling optimism for the remainder of the financial year.
Naveen Jindal, President of the Indian Steel Association and Chairman of Jindal Steel & Power, noted that around 55 to 60 per cent of annual steel consumption traditionally takes place in the second half of the year. He emphasised that construction and infrastructure activity typically resumes at pace once the monsoon subsides, driving a surge in demand for steel products across the board.
The anticipated rebound is also expected to strengthen pricing momentum. Analysts suggest that while global factors such as oversupply and import pressures continue to pose challenges, domestic fundamentals remain robust. With government-led infrastructure projects advancing and private construction set to pick up, the sector is positioned for double-digit growth in consumption in the latter half of the year.
Industry observers highlight that this seasonal pattern is consistent with past years, where post-monsoon demand has provided critical support to steelmakers’ margins. Rising consumption from housing, roads, bridges, and industrial projects is expected to be the key driver of growth, complemented by strong automotive and capital goods demand.
Jindal also underlined the importance of aligning production with upcoming demand, ensuring that steelmakers are prepared to capitalise on the market revival. The industry remains confident that supportive policies, combined with structural demand from infrastructure expansion, will provide a stable platform for growth through the rest of the year.
If forecasts hold true, the steel sector could enter a decisive growth phase from October, reinforcing its role as a cornerstone of India’s industrial and economic development.
