India’s steel consumption hits 159.8 million tonnes as demand falls

India’s steel consumption reached 159.8 million tonnes in calendar year (CY) 2025, up 8% from 148 million tonnes in CY24, even as global finished-steel demand declined 2% to 1,718 million tonnes. A 10.8% compound annual growth rate from CY21 made India the second-largest consumer, with 9.3% of global use.

Why did India’s steel consumption reach 159.8 million tonnes in CY25?

India’s steel consumption reached 159.8 million tonnes in CY25 because construction, real estate and automobile activity supported demand alongside infrastructure development. Consumption rose from 106 million tonnes in CY21 and 148 million tonnes in CY24, equating to a 10.8% compound annual growth rate (CAGR), which measures the annualised change over a multi-year period.

Infrastructure and construction were the largest identified end-use category, consuming 97.4 million tonnes in financial year (FY) 2025, compared with 64 million tonnes in FY21. The category represented about 64% of the 152.13 million tonnes covered by FY25 end-user data, including 37.5 million tonnes for real estate and 19.5 million tonnes for roads. Automotive consumption increased from 8.6 million tonnes in FY21 to 13.7 million tonnes in FY25, while power-sector use rose from 7.1 million tonnes to 12.6 million tonnes.

The CY25 result and the FY26 domestic figure use different reporting periods, but both show a larger domestic market. Final steel consumption reached 164 million tonnes in FY26, up from 152 million tonnes in FY25, while finished-steel production increased from 147 million tonnes to 162 million tonnes. Crude steel, the unrefined intermediate material produced before further processing into finished products, rose from 152 million tonnes in FY25 to 169 million tonnes in FY26.

How did India’s steel consumption differ from global demand?

India’s steel consumption expanded while consumption outside India contracted, creating a clear divergence in CY21 to CY25 trends. Global finished-steel consumption fell from 1,841 million tonnes in CY21 to 1,718 million tonnes in CY25, while consumption excluding India declined from 1,735 million tonnes to 1,558 million tonnes. The source calculates a negative CAGR of 2.6% for consumption outside India over the four calendar years.

Global demand declined 2% in CY25 after a further 2% decline in CY24 and a 3.5% contraction in CY22. The cited constraints were weaker construction, real estate and heavy-manufacturing activity, cautious investment, tighter financing conditions and slower industrial activity in major consuming regions. India’s 159.8 million tonnes represented 9.3% of global consumption in CY25, behind China’s 46.3%, or 796 million tonnes, and ahead of the United States at 5.3%, or 90.9 million tonnes.

India’s per-capita finished-steel use remained below world and Asian averages in CY25, leaving the National Steel Policy 2017 targets dependent on continued domestic demand growth. India recorded 109.2 kilograms per person, against 209 kilograms globally and 272 kilograms across Asia. The policy targets 160 kilograms of per-capita consumption and 300 million tonnes of steel-making capacity by CY30.

Which products and regions powered India’s demand?

Long products and non-alloy steel accounted for the largest portions of India’s domestic market in FY25. Long, or non-flat, steel includes bars, rods, rails and structural sections used extensively in construction, while flat steel includes coils, sheets and plates used in automobiles, appliances and machinery. Long-product consumption increased from 51.4 million tonnes in FY21 to 81.1 million tonnes in FY25, and flat-product consumption rose from 43.5 million tonnes to 71 million tonnes.

Long products accounted for 55% of finished-steel production in FY25, with 81 million tonnes produced, compared with 65.6 million tonnes of flat products. Non-alloy steel, also called carbon steel, represented 138.9 million tonnes of FY25 consumption, while alloy and stainless steel represented 13.2 million tonnes. Alloy and stainless consumption had a 20.8% CAGR from FY21 to FY25, compared with 11.9% for non-alloy steel.

West India and North India together accounted for 58% of FY25 domestic steel consumption, concentrating demand in regions with construction, infrastructure and manufacturing activity. West India consumed 46.4 million tonnes and North India consumed 42.1 million tonnes, together totalling 88.5 million tonnes out of the 152.13 million-tonne national total. East India used 32.2 million tonnes and South India used 31.4 million tonnes, so sustained growth across regions would require continued project activity beyond the two largest markets.

What could affect India’s steel consumption growth and trade balance?

India’s steel consumption growth depends on end-use demand and domestic supply conditions, while imports and weaker overseas markets can affect producers and pricing. Finished-steel imports rose to 9.551 million tonnes in FY25 from 8.320 million tonnes in FY24, led by 6.940 million tonnes of non-alloy steel. The source attributes higher imports to competitively priced supply from China, South Korea and Japan, domestic demand for flat steel and limited local availability of certain grades.

Finished-steel exports moved in the opposite direction in FY25, declining to 4.858 million tonnes from 7.486 million tonnes in FY24. Non-alloy exports fell to 4.144 million tonnes from 6.776 million tonnes over the same period. The stated factors were global oversupply, lower-priced Chinese steel, weaker demand in markets including the United Arab Emirates, Nepal and Türkiye, and tighter European Union import quotas.

Trade measures have influenced domestic prices and import incentives. A 12% temporary safeguard duty on select imports supported average domestic finished-steel prices of Rs 65,413 per tonne in the quarter ended June 2025. Prices reached around Rs 73,216 per tonne in the quarter ended June 2026, although higher import availability partly moderated the increase, making the continuation of end-use demand and trade protections relevant to the market.

Conclusion

India’s steel consumption of 159.8 million tonnes in CY25 reflects domestic expansion during a period when global demand declined to 1,718 million tonnes. From CY21 to CY25, India added 53.8 million tonnes of consumption while the market outside India contracted by 177 million tonnes. Infrastructure, construction, long products and non-alloy steel supplied most of the measured demand scale, while automotive, power, alloy and stainless segments increased from smaller bases.

The next measures to watch are the National Steel Policy 2017 goals of 300 million tonnes of steel-making capacity and 160 kilograms of per-capita use by CY30. The Union Budget for FY27 allocated Rs 12.2 lakh crore to public capital expenditure, and safeguard duties and quality-control measures have been used to address imports. Project execution, domestic production availability and overseas trade pressure will determine whether India’s consumption continues to diverge from global demand.