Posted on 01 Apr 2025
The Indian Stainless Steel Development Association (ISSDA) says cheaper-origin imports from China and Vietnam will continue affecting the domestic stainless steel sector in the April-June (Q1) quarter of the fiscal year ending March 2026 (FY26), ISSDA confirms to Kallanish.
ISSDA president Rajamani Krishnamurti says lower-priced imports, especially from China and Vietnam, will affect prices in Q1. Raw material price volatility is also expected to impact the sector, Krishnamurti notes.
"The stainless steel sector in Q1 FY26 will be influenced by multiple dynamic factors. Imports, particularly from countries with surplus production capacities like China and Vietnam, may exert pressure on domestic manufacturers by increasing competition. Additionally, global raw materials trends – especially fluctuations in nickel and ferro-alloys prices – will play a crucial role in shaping market dynamics," ISSDA told Kallanish on Monday.
"On the domestic front, steady demand from the infrastructure, construction, and manufacturing sectors is expected to provide resilience to the industry. Moreover, evolving government policies and trade measures aimed at ensuring fair competition could help address concerns related to import surges. Given these factors, the market will likely see a balance between global headwinds and domestic growth drivers, shaping the overall pricing trajectory in the coming quarter," the trade body adds.
"Stainless steel demand in Q1 FY26 will be shaped by multiple industry drivers. Key sectors such as construction, railways, urban infrastructure, and industrial manufacturing are expected to sustain their momentum, supported by ongoing investments and government initiatives like Make in India and the Smart Cities Mission. Additionally, industry efforts toward capacity expansion and sustainability are likely to enhance stainless steel adoption across various applications. While these factors indicate a positive outlook, demand trends will also depend on broader economic conditions, policy frameworks, and global market dynamics, making it essential to monitor developments closely," ISSDA notes.
Earlier, Krishnamurti told Economic Times: “The stainless-steel sector is also likely to encounter challenges such as volatile raw material prices, especially for key inputs like nickel and ferroalloys.”
Jindal Stainless managing director Abhyuday Jindal is quoted as saying the total capacity to produce stainless steel, which includes long and flat, in India is 7.5 million tonnes/year. However, 40% of stainless steel capacity remains unutilised.
Source:Kallanish
