Steel Sector Faces Price Crisis Amidst Strategic Expansion Plans

Small companies in the steel sector face challenges due to low prices, amid government plans for capacity expansion. Overproduction and dumping, particularly from China, further impact prices. The government is implementing measures to ensure fair pricing. Secretary Sandeep Poundrik emphasizes the strategic importance of the domestic steel industry.

Small companies in the steel industry are grappling with low market prices, posing challenges as the government aims for major capacity expansion in the sector, according to Steel Secretary Sandeep Poundrik. Speaking at the 'STEEL SUMMiT 2025', he noted a drastic shift in pricing from five years ago when prices were significantly higher.

Poundrik highlighted the closure of about 150 small steel producers due to the price slump, stressing that profit margins are suffering across the industry. He attributed the issue to global overproduction, particularly in China, which leads to price-dampening dumping practices affecting countries worldwide.

In response, the government has provisionally imposed a safeguard duty on imported steel to support domestic players. Despite current challenges, there's a positive outlook as consumption and capacity rise. The sector's strategic importance is underscored by its role in self-reliance and defense, with a call for more investment and specialization in green and specialty steels.

(With inputs from agencies.)