Gadchiroli pitched as Maharashtra’s future green steel hub India set to drive next global steel demand wave Italy crude steel output rises 3.1% in May Green steel progress remains slow worldwide
India’s metal producers may see muted performance in the near term as ferrous metal prices decline due to weak global demand and falling exports, according to analysts tracking the sector.
The ferrous segment, which includes steel and iron ore, has come under pressure from lower realizations and sluggish consumption in China and Europe. Domestic players such as Tata Steel, JSW Steel, and SAIL are expected to face margin compression in the coming quarters.
Analysts say that while India’s long-term steel demand outlook remains strong, near-term challenges like price corrections, rising inventories, and global oversupply could impact profitability. The average domestic hot-rolled coil (HRC) prices have dropped nearly 8–10% over the past quarter.
On the other hand, non-ferrous metal producers including Hindalco and NALCO may fare better due to stable aluminium demand from the EV and renewable sectors.
Experts note that ferrous producers might rely on cost optimization and exports to Asian markets to maintain earnings stability until infrastructure demand revives domestically.
The overall metal index could see range-bound movement as investors await cues from global commodity trends and energy costs.
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