New Delhi, Dec 17 || Steel demand growth in India is projected to remain steady at around 8 per cent for FY26, generating an incremental demand of 11-12 million tonnes per annum (mtpa), a report said on Wednesday.
However, softer steel prices and incremental supply are expected to pose challenges for domestic steel producers, the report from ratings agency ICRA said.
The ratings agency forecasted the "operating environment for domestic steel producers to remain challenging over the coming quarters" also due to stable yet sticky input costs, and a weak external environment.
"Fresh upcoming capacity addition plans of 80-85 million tonne (mt), entailing investments of $45-50 billion over FY2026-2031, could be at a risk of a slowdown," the report noted.
ICRA highlighted that domestic steel industry operating margins for FY 2026 are expected to remain flat at 12.5 per cent.