India Steel Sector: Market Update February 2026 India has solidified its position as the primary engine of global steel growth. While international markets face flat or declining production, the Indian domestic sector is experiencing a significant upward trajectory. Core Performance Metrics As of February 2026, the **BigMint India Steel Composite Index** has risen **1.7%** week-on-week, following a bullish trend throughout January. Steel prices have strengthened, with primary mills increasing blast furnace rebar prices by up to **₹3,000 per tonne**. Inventory levels at primary mills have sharply declined by nearly **40%** month-on-month, signaling rapid absorption of supply by the market. Finished steel consumption is maintaining a robust growth rate, with projections holding steady at an **8-10%** volume CAGR through **FY28**. Demand Drivers and Infrastructure Structural demand is being propelled by the **$1.4 trillion National Infrastructure Pipeline** and large-scale projects under the Gati Shakti and Bharatmala initiatives. Real estate remains a critical pillar, with residential property sales expected to reach **₹6.65 lakh crore** in **FY26**, a **19%** year-on-year increase in value. Furthermore, the energy transition and defense sectors are emerging as high-growth segments for specialty steel products. Supply and Capacity Expansion India’s current installed crude steel capacity has reached approximately **180 million tonnes (MT)**. Major producers are on a path to scale this to **300 MT** by **2030**. Domestic manufacturers are currently shielded by a **12% safeguard duty** on select imports, ensuring that local demand is primarily met by domestic players. This protectionist environment, combined with rising realizations, is facilitating a recovery in operating margins. Leading Producer Highlights **Tata Steel** and **JSW Steel** continue to lead the market expansion. Tata Steel recently hit new price highs of **₹211.35**, supported by a **6%** year-on-year increase in operating income. **JSW Steel** is seeing similar momentum, with standalone EBITDA per tonne projected to rise to **₹10,750** by **FY27**. Both entities are aggressively ramping up capacity, with JSW targeting a domestic capacity of **30 MTPA** in the immediate term. Raw Material and Cost Dynamics While the outlook is positive, the industry manages sticky input costs. Iron ore production remains strong at **280 million tonnes**, yet the sector faces a growing reliance on imported coking coal, with nearly **70%** sourced from international markets. The industry is also initiating a structural shift toward "green steel," with the goal for specialty steel production to reach **42 million tonnes** by the end of **FY27**.