Cheaper Chinese Steel May Weigh on India’s Steel Prices in FY26, Says Fitch

Fitch Ratings has noted that Indian steelmakers are facing reduced rating headroom due to cheap imports and tariff risks. The U.S. tariffs on steel imports, effective March 12, are diverting global steel flows, potentially increasing cheaper imports from countries like China, Japan, and South Korea. This influx could further depress domestic steel prices, impacting profitability and capacity utilization. Fitch highlights that India's steel demand growth remains strong, but the influx of cheaper imports poses significant challenges for local producers.

 

Source: S&P Global, Reuters