President’s Desk

As we move through 2026, the global steel industry continues to remain at an important crossroads, with weak global demand, rising excess capacity, changing trade policies and geopolitical uncertainties shaping the market. According to the OECD Steel Outlook 2026, global steel demand is projected to grow by only around 0.4% in 2026, while global steelmaking capacity has reached a record 2.445 billion tonnes. Excess capacity stood at around 640 million tonnes in 2025 and is projected to increase further to 745 million tonnes by 2028. These developments are creating increasing pressure on steel prices, profitability and international trade.

In this challenging global environment, India continues to stand out as one of the strongest growth markets for steel. Infrastructure development, manufacturing, urbanisation, renewable energy and increasing domestic consumption continue to support the country’s steel demand. India has also remained one of the major contributors to global steel capacity expansion, supported by comparatively stronger domestic demand. The opportunity before India is significant, but it is equally important that the competitiveness of the entire steel value chain—including manufacturers, processors, traders and steel users—is protected and strengthened.

However, the road ahead is not without challenges. Global excess capacity and increasing exports from surplus-producing countries are putting pressure on steel markets across the world. China exported a record 131 million tonnes of steel in 2025, reflecting the impact of weak domestic demand and surplus production. Countries across the world are consequently strengthening anti-dumping, safeguard and other trade measures. The global steel industry is therefore moving towards a period where fair competition, transparency and a level playing field will become increasingly important.

For India, the balance between protecting domestic industry and ensuring the availability of quality steel at competitive prices for downstream industries remains extremely important. Steel users require access to the right quality, specifications and grades of steel at globally competitive prices. Any restriction that prevents manufacturing units from obtaining specialised or superior-quality raw materials can ultimately affect the competitiveness of the downstream industry and, consequently, the larger objective of Make in India. At the same time, policy measures need to provide adequate protection against unfairly traded imports while ensuring that genuine and essential requirements of steel users are not adversely affected.

Geopolitical tensions, disruptions in global supply chains and uncertainty surrounding international tariff policies continue to affect trade and investment decisions. The increasing use of tariffs and trade remedies by major economies has made international steel trade more complex. Stability and predictability in policy remain essential for businesses to plan investments, develop markets and build long-term supply chains. The steel industry, being fundamental to infrastructure and manufacturing, requires an environment where both producers and users can operate with confidence.

In this evolving environment, SUFI continues to play an important role in representing the interests of steel users and bringing together the various stakeholders of the steel ecosystem. Our objective remains to facilitate constructive dialogue between steel users, mills, traders, service providers and policymakers, while ensuring that the concerns of the user industry receive due consideration.

One of the significant developments for SUFI during 2026 was the signing of a Memorandum of Understanding with the National Stock Exchange of India (NSE) in May. The collaboration is aimed at supporting the development and growth of the steel and related commodity derivatives ecosystem, including the HRC Futures Index. I believe that developing transparent and efficient market mechanisms will contribute towards better price discovery and provide industry participants with improved tools for managing price risks. The MoU marks another important step in strengthening the institutional framework around the Indian steel market.

SUFI has also continued to strengthen its international engagement. Building on our international initiatives and the launch of SUFI International Chambers, we remain focused on facilitating international companies seeking to establish or expand their presence in India’s steel sector. The initiative is intended to assist companies with matters such as setting up offices, company formation, policy-related requirements, taxation support, steel-sector market information and business networking. The recently concluded AGM also reaffirmed the importance of strengthening and developing SUFI International Chambers as an important platform for international business facilitation and cooperation.

As we look ahead, the Indian steel industry has an important opportunity to strengthen its position in the global market. Higher per capita steel consumption, stronger domestic manufacturing, infrastructure development and greater integration with global markets can provide the foundation for sustained growth. At the same time, India must remain conscious of global overcapacity, trade distortions, raw-material security, sustainability requirements and the evolving nature of international trade.

SUFI will continue to work towards a stronger, more competitive and inclusive steel ecosystem, ensuring that the voice of steel users remains an integral part of industry and policy discussions. I am confident that through cooperation, constructive dialogue and collective effort, we can convert the challenges facing the steel industry into opportunities for sustainable growth.

Let us continue to collaborate, innovate and work together towards higher steel consumption, stronger industry participation and a globally competitive Indian steel sector. India has the potential to play an increasingly important role in shaping the future of the global steel industry, and SUFI remains committed to contributing meaningfully to this journey.

Warm regards,