India’s steel demand to grow 7.9% in 2026, remain world’s fastest-growing major market: Worldsteel

New Delhi: India remains the world’s fastest-growing major steel market, with demand projected to increase by 7.9 per cent to 172.4 million tonnes (MT) in 2026, according to the World Steel Association (worldsteel) on Monday.

Demand in the country is expected to grow by 8 per cent to 186.2 MT in 2027, the industry body said in its Short Range Outlook October 2026.

Globally, steel demand is forecast to remain largely unchanged at 1,722 MT in 2026 before returning to growth of 1.7 per cent in 2027, reaching 1,752 MT, worldsteel said.

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In China, the world’s largest steel-producing nation, steel demand is expected to decline by 2 per cent in 2026. The contraction is projected to moderate to 1 per cent in 2027, the Belgium-based industry body said.

In India, growth remains broad-based, with infrastructure-led construction continuing to serve as the primary driver of steel demand.

Demand from the private real estate sector remains robust. Healthy manufacturing growth, a substantial pipeline of renewable energy projects and continued expansion of manufacturing capacity are supporting demand for electrical and mechanical machinery. Meanwhile, automotive production is benefiting from domestic demand, export momentum and policy support.

Steel demand in the Gulf is expected to recover strongly once uncertainty eases, the Strait of Hormuz reopens and supply chains return to normal.

Reflecting this optimistic outlook, worldsteel said the region’s steel sector is likely to record an 11.3 percent rebound in 2027, bringing demand back to its 2025 level.

In the United States, steel demand is projected to grow by 2 percent in 2026. Growth has been supported by strong investment in data centres and energy infrastructure, including power generation, renewable energy and oil and gas, alongside additional support from selected manufacturing sectors.

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In Europe, the outlook remains subdued. The industry body said, “We now expect EU apparent steel use to decline by 0.3 per cent in 2026 before growing by 3.1 per cent in 2027, a downward revision of 1.5 percentage points for this year. The 2025 outturn was stronger than we had forecast, but a significant part of that strength was stock building ahead of CBAM taking effect in 2026”.

The recovery in construction is progressing more slowly and unevenly than anticipated. While residential building permits are showing signs of bottoming out, completions remain in recession, and the automotive sector continues to weigh on demand, worldsteel said.

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