Steel demand in India is expected to recover from October, with around 55-60pct of annual consumption typically concentrated in the second half of the year, according to Jindal Steel and Power chairman Naveen Jindal.
Speaking on the sidelines of the 3rd ISA Coking Coal Summit, he noted that demand has grown by 7-8pct so far in 2025 and could reach double digits in the coming months.
Jindal highlighted India’s strong domestic potential, pointing out that with a population nearing 1.5 bln and per-capita steel use of only 104 kg, well below the global average of 219 kg, consumption still has significant room to grow.
On price trends, he attributed the recent fall in domestic steel prices to steady increases in production and seasonal factors, with the monsoon and flooding slowing construction activity. Globally, he added, steel prices remain under pressure as exports originally destined for the US are being redirected to other markets due to tariffs.
The Directorate General of Trade Remedies (DGTR) has meanwhile recommended a phased safeguard duty on certain flat steel products to counter rising imports, mainly from China, South Korea, and Japan. The duty, first imposed provisionally in April 2025, could now be extended for three years, starting at 12pct and gradually reduced to 11pct.
Commenting on recent tax reforms, Jindal welcomed the GST 2.0 framework, which raises the GST rate on coal from 5pct to 18pct while removing the compensation cess. Since steel output also carries an 18pct GST rate, coal tax can be claimed as input credit, making the change overall positive for the sector. The reform by the Indian government, which simplifies country’s tax structure into two slabs of 5pct and 18pct, is aimed at boosting consumption and economic activity.
