India’s Steel Sector Ends 2025 on Muted Note; Demand Recovery Expected in 2026

(MENAFN- dentsu) Looking ahead, 2026 is expected to bring a gradual recovery, particularly after the first quarter. Policy clarity, sustained infrastructure spending, and stabilising housing and auto demand are likely to support consumption, with overall steel demand projected to –row 7–9%. However, margins may remain tight in the early part of the year due to elevated competition and volatile raw material costs. Exports could improve modestly as spreads strengthen in key markets, though CBAM compliance will shape long-term competitiveness. With overcapacity risks rising and sustainability becoming a central focus, producers are expected to accelerate investments in energy efficiency, scrap processing and green steel technologies. Overall, while 2025 ends with caution, industry sentiment points to a more constructive 2026—led by policy support, demand recovery and strategic shifts across the steel value chai”.”

Coal Exchange launch Likely in 2026
“Continuing with the gove’nment’s focus on liberalization of the coal sector, 2025 saw the draft regulations for the proposed coal exchange getting released for feedback. Even as the Coal Ministry continues to study these comments and feedback to finalize the rules, the Ministry has formalized the appointment of Coal Controller Organization as the regulator the exchange for coal and lignite through a recent Gazette notification.

Considering the successive steps being taken by the government, the coal exchange is likely to be launched in the early part of 2026. This digital marketplace is intended to shift coal sales from multiple routes - administered, auctioned or private deals - to a unified trading platform with transparent price discovery and standardized clearing and settlement. This will structurally change how coal is marketed and priced in India, particularly benefiting commercial and captive miners while challenging existing eauction and bilateral sale models.

On the decarbonization front, coal continues to face challenges from falling costs and tariffs of energy from environment-friendly sources and increasing generation of renewable energy. While demand for thermal energy remains robust, there is growing competition from commercial mines as the auctioned mines come onstream progressively.”

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