Steel sector grappling with low prices; 150 units have halted production, threatening government expansion targets
Low steel prices could pose a problem for small companies. Steel Secretary Sandeep Poundrik expressed this possibility. He said that about 150 small steel producers have halted production due to low prices. Addressing the Steel Summit 2025, Poundrik explained that five years ago, steel prices were higher than necessary, but today they are lower than necessary, creating an imbalance in the market.
Low prices could impact the government’s capacity expansion targets
Poundrik said that current prices have become a major challenge for small industries, especially at a time when the government is working to expand the steel sector’s capacity over the next five to seven years. You’ve just seen the second quarter results of all companies; almost all have seen a decline in profits. But pricing is a problem, especially when we need to invest in 100 million tons of capacity over the next five to seven years.
Surplus production a problem for the world
The Secretary also pointed out that surplus production and resulting dumping worldwide, especially in China, is a real problem, not just for us, but for every country.
Government Protecting the Domestic Steel Industry
Pondrik said the government has temporarily imposed safeguard duty on imported steel to ensure that the domestic steel industry does not face any problems. The good news is that steel consumption is increasing, and capacity is expanding. New capacities have been developed over the past 10 years to meet the growing consumption.
The Steel Industry is a Strategic Sector
The Secretary said that the steel industry needs to be protected for the country’s long-term self-reliance. It is a strategic sector, in the sense that if you become dependent on imports, you may face problems due to geopolitical reasons, as we are seeing in the world today.
The notion of a few companies dominating the steel industry is wrong.
Rejecting the notion that 3-4 large companies dominate the steel industry, Poundrik said that 47 percent of steel production in India is done by 2,200 medium-sized steel producing companies.
