India's robust steel demand is expected to keep domestic capacity utilization above 90% over the medium term, with demand projected to grow at a compound annual rate of around 7% over FY26-29, exceeding the pace of capacity additions, local media reported on August 29, citing a report released by Kotak Institutional Equities.

The report noted that consumption patterns across India remain steady, underpinned by solid industrial and infrastructure activity. Domestic demand grew 7.8% year on year in the year-to-date period of FY27, following a 7.7% expansion in FY26, which came after four consecutive years of double-digit growth.

On the external trade front, exports climbed sharply from a low base, while imports also posted higher volumes over the same period. Outbound shipments rose 35% on the year to 2.3 million tonnes, but were exceeded by inbound volumes of 2.8 million tonnes, up 36.7%, the report said.

Kotak noted that trade remedy measures remain in progress, with ongoing anti-dumping investigations expected to restrain import flows.

In terms of product pricing, long steel prices have shown visible recovery in recent weeks, reversing the decline seen earlier in the monsoon season. Long steel prices have rebounded by 12% over the past months, erasing the sharp correction over June-July 2026. Domestic supply tightness and improving seasonality as the mons