Steel Prices Hit Five-Year Low in India Despite Demand: Narendran

Tata Steel CEO Highlights Global Trade Challenges and Pricing Pressures

Key Points:

• Steel prices reached lowest level in five years during 2025
• Chinese steel exports exceed 100 million tons annually
• Jamshedpur plant expansion limited due to space constraints

JAMSHEDPUR – Tata Steel CEO and Managing Director TV Narendran said that steel prices in India dropped to their lowest levels in five years during 2025 despite strong domestic demand and supply.

Narendran addressed employees at the Centre for Excellence cake-cutting ceremony on Thursday. He said the previous year proved challenging. Global trade faced increasing disruptions and protectionist measures.

He stated that more countries were protecting themselves. They wanted to ensure materials didn’t cross borders easily. He added that the global industry must deal with these consequences.

Narendran said domestic operations weren’t significantly affected. However, European business faced pressure. Export duties from Europe and America created difficulties.

He pointed to China’s economic slowdown. The construction sector particularly consumed less steel. This led to surging Chinese steel exports for consecutive years.

He said China exports over 100 million tons. This volume equals India’s total steel production. Chinese steel didn’t enter India in large quantities.

On the other hand, he noted global oversupply complicated exports. Indian producers faced difficulties despite surplus production. He stated this resulted in numerous challenges.

He added that steel demand and supply remained strong. However, prices stayed below international levels most of the year. He said 2025 witnessed the lowest steel prices in five years.

Narendran praised employees’ efforts across all locations. This included European staff contributions. He said the company performed better financially than previous years.

He credited management and union leaders. Their collaborative efforts helped navigate challenges. The latest quarterly performance report reflected this improvement.

Regarding expansion plans, Narendran said the Jamshedpur plant had limited scope. The facility operates at 11 million ton capacity. It spreads across 1,800 acres.

He stated that volume expansion remains limited. However, the company focuses on value-added products. Facilities are being enhanced for this purpose.

He said the state-of-the-art combi mill required investment. The special long products facility cost Rs 2,000 crore. The tinplate division expansion involves similar investment.

Narendran said Kalinganagar plant capacity increased significantly. It expanded from 3 million tons to 8 million tons. Meramandali plant operates at 5.2 million tons.

Meanwhile, he said Neelachal plant is being expanded. Capacity will increase from 1 million to 4 million tons. Ludhiana plant will begin operations from March.

He stated that India’s economy keeps growing strongly. The market shows robust expansion. India represents the largest and fastest-growing steel-consuming market.

He added that preparedness remains essential. Sensitivity to global issues is required. Both the country and company must stay ready for challenges.