India fastest-growing major steel market; demand to grow 7.9% in 2026: World Steel Association
- IBEF
- October 13, 2026
India is expected to remain the world’s fastest-growing major steel market, with steel demand projected to increase by 7.9% to 172.4 million tonnes (MT) in 2026 and expand by a further 8% to 186.2 MT in 2027, according to the World Steel Association’s October 2026 Short Range Outlook. The growth outlook reflects sustained domestic economic activity, infrastructure development and expanding industrial demand. Infrastructure-led construction continues to be the primary driver of steel consumption, supported by robust private real estate activity, manufacturing expansion and a substantial pipeline of renewable energy projects. Rising investment in manufacturing capacity is also expected to support demand for electrical and mechanical machinery, while the automotive sector is benefiting from domestic consumption, export momentum and policy support. These factors are reinforcing India’s position as a key growth market for the global steel industry. In contrast, global steel demand is forecast to remain largely unchanged at 1,722 MT in 2026 before growing by 1.7% to 1,752 MT in 2027, highlighting India’s comparatively stronger demand outlook.
The positive outlook is supported by India’s expanding infrastructure, real estate, renewable energy and manufacturing ecosystems, which are expected to sustain steel consumption over the coming years. Globally, demand trends remain mixed, with China’s steel demand projected to decline by 2% in 2026 and a further 1% in 2027. The United States is expected to record 2% growth in steel demand in 2026, supported by investments in data centres, energy infrastructure and selected manufacturing sectors. Meanwhile, the European Union’s apparent steel use is projected to decline by 0.3% in 2026 before recovering by 3.1% in 2027, amid a slower-than-expected construction recovery and continued weakness in automotive demand. The Gulf region is expected to experience an 11.3% rebound in steel demand in 2027 as geopolitical uncertainty eases and supply chains normalise. Against this global backdrop, India’s infrastructure-led development, manufacturing expansion and domestic consumption are expected to underpin its steel demand growth and strengthen the industry’s contribution to economic development.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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