Approximately 150 small-scale steel producers across India have halted production due to persistently low steel prices in the domestic market, India’s steel secretary Sandeep Poundrik said on Wednesday, November 5.
Government’s expansion plans clash with industry slowdown
Poundrik noted that falling steel prices have created major challenges for smaller companies, particularly at a time when the Indian government is targeting a significant capacity expansion in the steel sector over the next five to seven years.
“Steel prices today are lower than what they should be, and small producers are struggling,” he said.
The steel secretary emphasized the need to safeguard the steel industry to ensure India’s long-term industrial self-reliance, calling steel a strategic sector critical to the nation’s economic and security interests.
“If we become dependent on imports, we risk facing serious challenges due to geopolitical factors, as we are witnessing today,” he added.