Steel demand weak till September, rebound from October: Naveen Jindal

Naveen Jindal expects steel demand to rebound in October after monsoon weakness, projects double-digit growth in FY26, and calls met coke import quotas a 'permit raj'

India’s steel demand will remain weak through September due to the seasonal impact of the monsoon, but is set to rebound sharply beginning October, said Naveen Jindal, president of the Indian Steel Association and chairman of Jindal Steel Ltd.

 

“Owing to the weather, there have been rains in most parts of the country. Many parts are also flooded. Up to September end, this impact is there, where the demand goes down,” Jindal said.

 

“The situation will normalise next month,” he added, noting that 55–60 per cent of steel consumption typically takes place in the second half of the year.

 

He was speaking to the media on the sidelines of the Third Coking Coal summit organised by the Indian Steel Association in New Delhi.

 

Despite the current weakness, Jindal expects demand to grow in double digits during 2025-26.

 

“Of course, for sure it is going to be in double digits,” he said, pointing out that steel demand always rises between October and April as construction activity picks up.

 

Jindal criticised the government’s quota-based system for metallurgical coke imports, calling it distortionary.

 

“This itself is licence-quota-permit raj,” he said. “Suppose one country is selling for $400 and another is selling for $250 — why should I be forced to buy from the expensive one? Such practices do not help the industry.”

 

On raw materials, he argued that auctioning iron ore mines one at a time forces companies with downstream investments to pay very high premiums.

 

“If enough mines are brought out together, then automatically it will put the steelmakers at ease. There is enough for everyone, and these premiums will also go down,” he said.

 

He also urged the government to expedite environmental clearances, noting that only about 135 of nearly 400 approved mines are currently operational.

 

Jindal said the steel industry had pressed for a 25 per cent safeguard duty on imports but accepted the Directorate General of Trade Remedies’ recommendation of 12 per cent.

 

On taxation, he clarified the recent GST hike on coal does not weigh on producers since they can claim input credits.

 

“Whatever GST we pay on coal, we can get input credit because our output (steel) is also at 18 per cent. So, it does not impact,” he said.