Steel Sector

India is accelerating its steel scrap utilization as a strategic lever to boost industrial growth, reduce reliance on imported raw materials, and support environmental sustainability. By integrating higher volumes of scrap into domestic steel production, the country aims to enhance cost-efficiency, decrease energy consumption, and lower carbon emissions across the steel sector. Policy incentives, improved scrap collection infrastructure, and advanced recycling technologies are expected to strengthen this transition.

Union Minister Piyush Goyal has advocated stronger policy incentives for the adoption of precast steel and prefabricated construction technologies, describing them as a practical solution to India’s growing pollution challenge. He emphasized that traditional construction methods contribute significantly to dust, waste, and carbon emissions, particularly in urban centers. By promoting precast steel structures, Goyal said India can reduce environmental damage, accelerate project completion, and improve overall construction quality.

JSW Steel recorded a 6% increase in crude steel production during the December quarter, reflecting steady demand conditions and improved operational efficiency across its domestic facilities. The growth underscores the company’s ability to maintain output momentum despite a challenging global steel environment marked by pricing volatility and uneven demand recovery. Higher capacity utilization, supported by infrastructure spending and stable domestic consumption, played a key role in lifting production volumes.

Budget 2027 places green steel production at the center of India’s industrial and climate strategy, unveiling targeted incentives to reduce carbon intensity in one of the country’s most emission-heavy sectors. The proposed measures aim to encourage steelmakers to adopt cleaner technologies, expand the use of renewable energy, and invest in low-emission manufacturing processes. By aligning fiscal support with sustainability goals, the government seeks to enhance global competitiveness, meet climate commitments, and future-proof the domestic steel industry.

Steel prices in India dropped to a five-year low in 2025, reflecting a convergence of weakening domestic demand, subdued infrastructure activity, and global supply pressures. Key benchmarks, including hot-rolled coils and long products, saw sustained declines as construction and automotive sectors moderated after years of strong growth. Industry participants noted that excess inventory and slower capital expenditure further exacerbated the price slide. While cost pressures from raw materials like coking coal eased slightly, it was insufficient to offset the broader demand slowdown.

The European Union’s carbon border tax is emerging as a significant challenge for India’s steel and aluminium industries, threatening to raise export costs and compress margins. Designed to curb carbon leakage and promote cleaner production, the levy will impose additional charges on carbon-intensive imports entering the EU. For Indian producers, many of whom rely on coal-based processes, the policy could weaken competitiveness in a key overseas market. While the move underscores the global shift toward sustainability, it also exposes structural gaps in India’s industrial decarbonization.

Tata Steel’s operations in the Netherlands have come under intense scrutiny following a high-stakes lawsuit seeking nearly €1.4 billion in damages over alleged environmental and health impacts. The case, filed by local groups and residents, accuses the company’s Dutch arm of contributing to pollution that has adversely affected surrounding communities. The legal challenge adds a new layer of complexity to Tata Steel’s European business at a time when steelmakers are already navigating regulatory pressure, decarbonisation costs, and volatile demand.

The Bokaro Steel Plant (BSL) outlined its long-term expansion strategy and operational priorities during a recent Heads of Departments (HOP) meet, reinforcing its alignment with Steel Authority of India Limited’s Vision 2030. Senior leadership emphasized capacity enhancement, cost optimization, digital transformation and sustainability as central pillars of future growth. The meeting served as a strategic forum to review performance, address operational bottlenecks and synchronize departmental goals with national steel sector ambitions.

In a decisive move to safeguard the domestic steel industry, the Indian government has imposed anti-dumping duties on certain types of steel imports from Vietnam. The measure, recommended by the Directorate General of Trade Remedies (DGTR), aims to counter the influx of low-cost steel products that were undercutting Indian manufacturers and distorting market competition.

The ambitious Rs. 1.5 lakh crore steel project proposed by ArcelorMittal Nippon Steel India Limited (AMNSIL) in Andhra Pradesh has encountered a setback after the Expert Appraisal Committee (EAC) under the Ministry of Environment, Forest and Climate Change deferred its environmental clearance. The delay stems from ambiguity surrounding new siting guidelines introduced earlier this year under notification GSR 85(E). The committee has sought further clarification from the ministry’s Controller of Pollution Division before proceeding.