(NDTV Profit)
Indian steel-makers are expected to see a robust first quarter this fiscal, backed by high domestic steel prices and the continued benefit of safeguard duties.
Coking coal prices are expected to remain relatively stable through first quarter of financial year 2026, offering a foundational predictability for raw material costs.
While a monsoon-induced weakness is expected in second quarter as construction activity slows, this is not a major concern given the cyclical nature of the industry. A robust upturn is anticipated once the rains subside.
Against this backdrop, major Indian steel players like JSW Steel Ltd. and Steel Authority of India Ltd. are gearing up for improved margins in the coming quarters. Their confidence stems from a robust domestic demand, with India’s appetite for steel consistently growing, fuelled by ongoing infrastructure projects and overall economic growth.
These companies are also keenly focused on the strategic planning and execution of their capex plans, aiming to enhance efficiency and expand capacity, which should further bolster their profitability.
Furthermore, recent global trade shifts, such as the US tariff hike on steel and aluminium from 25% to 50%, are expected to have limited impact on the Indian steel industry. This is primarily because India’s direct exports of steel to the US account for a small fraction of its total exports—combined steel and aluminium exports stood at approximately $4.56 billion in FY25.
