India's steel demand remains resilient despite global market weakness

India's steel sector is defying global headwinds, with domestic prices climbing despite weak international markets. The resilience is underpinned by robust infrastructure spending, steady manufacturing growth, and elevated input costs that support price floors.

Domestic consumption remains strong and capacity utilisation levels are healthy, positioning India's steel outlook favourably. The global steel market, however, continues to face pressure from Chinese oversupply, which is weighing on international prices and creating a headwind for Indian producers.

Cheaper imports pose a significant risk to the domestic steel sector going forward. Nevertheless, India's domestic demand drivers—particularly government-backed infrastructure projects and industrial expansion—are expected to sustain near-term demand.