Steel Secretary Sandeep Poundrik highlighted the challenges facing the domestic steel industry due to low prices and dumping of sub-standard steel. Speaking at the CII Steel Summit 2025, he noted that current steel prices are at a five-year low, significantly impacting small producers. "About 150 smaller firms have stopped production due to low prices," he stated, emphasizing that while prices were too high five years ago, they are now lower than they should be.

As of October 26, local steel prices have fallen to between Rs 47,000 and Rs 48,000 per tonne for hot rolled coil. This decline, while beneficial for downstream consumers like automobile manufacturers, poses serious profitability issues for steelmakers. Poundrik mentioned that the government is working with the Ministry of Coal to increase the use of domestic coking coal, which currently relies heavily on imports, accounting for about 90% of the supply.

The secretary pointed out that global overproduction, particularly from China, has led to dumping in India, further affecting local prices. He assured that the government is taking steps to protect the domestic industry, including the provisional imposition of safeguard duties on imported steel.

Despite these challenges, Poundrik noted that steel consumption is on the rise, and new capacities are being developed to meet this demand. He stressed the importance of self-reliance in the steel sector, stating, "If you become dependent on imports, you may face problems due to geopolitical reasons."

He also addressed the misconception that the steel industry is dominated by a few large players, revealing that 47% of steel production in India comes from around 2,200 mid-sized companies. To ensure quality, the government is implementing Quality Control Orders to create a level playing field for both domestic and foreign producers.

Looking ahead, Poundrik mentioned the potential of hydrogen as a viable alternative to natural gas for green steel production, with prices expected to decline significantly in the next five to ten years. He called for increased investment in specialty steel, particularly as the defense sector expands.

With a target of achieving an annual production of 500 million tonnes by 2047, the steel sector is positioned as a crucial component of India's development agenda, according to industry leaders. They emphasized the need for strategic investment, self-reliance, and sustainability to ensure the sector's growth and resilience in the future.