India has emerged as one of the fastest-growing steel markets, according to a recent report by Goldman Sachs, as global steel prices rose across major regions in April and early May. The report, titled "Global Steel: The Steel Market Barometer – May Update," noted that average hot rolled coil (HRC) prices increased in nearly all major markets during April.
Global Price Trends
Brazil led the price surge with a 10% month-on-month increase, followed by Japan at 6.5% and China at 2.9%. On a year-to-date basis, Brazil's HRC steel price performance has been the strongest, rising 21%, followed by the United States with a 15% increase. Other regions also saw price gains ranging from 6% to 13%, as quoted by ANI from the report.
India's Strong Performance
India continued to exhibit robust growth within this global uptrend. The country's crude steel production rose 11% year-on-year in March, compared with 10% year-to-date growth and 7% in February. Long steel prices also firmed in April across key regions, with Brazil recording a 12% rise in rebar prices, followed by Europe at 6.9% and the Black Sea region at 6.1%.
Supply Side Dynamics
On the supply side, China's steel output continued to contract, falling 3.2% year-on-year in the first two weeks of May. Commenting on the sector, Goldman Sachs stated, "On the industry level, while the anti-involution effort and long-term capacity cut plan for the Chinese steel sector remain intact, we see delayed execution in 2026E in terms of both capacity and production discipline."
Regional Variations
Region-wise trends showed mixed performance across major producers. Europe's crude steel output rose 16% month-on-month in March, though it remained lower year-on-year and on a year-to-date basis. In the US, average weekly steel production increased 3% in April, while utilisation rates averaged 79.6%. Goldman Sachs added that infrastructure activity in China remained resilient despite weakness in the property sector, while manufacturing improved and construction softened.
Outlook
The investment bank projected broadly stable steel prices across major global markets through 2026, with US prices expected to remain stronger than those in Europe, China, and Brazil.
