India fastest-growing major steel market; demand to grow 7.9% in 2026: World Steel Association

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

The country's demand is expected to rise by 8 per cent in 2027 to 186.2 million tonnes (MT), the industry body said in its 'Short Range Outlook October 2026'.

worldsteel said it forecasts global steel demand will remain essentially unchanged at 1,722 MT in 2026 before returning to 1.7 per cent growth in 2027 to reach 1,752 MT.


However, steel demand in China - the world's largest steel-producing nation - is likely to drop by 2 per cent in 2026. In 2027, contraction in China is also expected to narrow to 1 per cent, the Belgium-based industry body said.

India remains the world's fastest-growing major steel market, with demand estimated to expand by 7.9 per cent in 2026 to 172.4 MT and by 8 per cent in 2027 to 186.2 per cent.

Growth continues to be broad-based. Infrastructure-led construction remains the primary driver.

Private real estate demand is robust. Healthy manufacturing growth, a substantial renewable energy project pipeline and continued expansion of manufacturing capacity are lifting electrical and mechanical machinery, while automotive output is buoyed by domestic demand, export momentum, and policy support.

Steel demand in the Gulf should recover strongly once the uncertainty clears, the Strait of Hormuz reopens, and the supply chains normalise.

Reflecting this optimistic scenario, worldsteel said the sector is likely to witness an 11.3 per cent rebound in 2027, taking regional demand back to its 2025 level.

Steel demand in the US is projected to grow by 2 per cent in 2026. Growth has been underpinned by strong investment in data centres and energy infrastructure, including power generation, renewables, and oil and gas, together with incremental support from selected manufacturing sectors.

For Europe, it 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 construction recovery is proving slower and more fragmented than expected, with residential permits showing signs of bottoming out while completions remain in recession, and automotive continues to drag, worldsteel said.