<div id="readability-page-1" class="page"><div><p>India is set to remain the fastest-growing major steel market even as global demand is expected to stagnate in 2026 amid geopolitical tensions, particularly the ongoing conflict in West Asia, according to the World Steel Association’s (worldsteel) latest Short Range Outlook.<small> </small></p></div><div><div><div id="article-index-0">  <p>  Global steel demand is projected to grow at a marginal 0.3 per cent in 2026 to 1,724 million tonnes (Mt), indicating that the market is bottoming out after a prolonged period of weakness since 2022. Growth is expected to pick up to 2.2 per cent in 2027, taking demand to 1,762 Mt.<small> </small></p> </div><div id="article-index-1">  <p>  The outlook has been clouded by the West Asia conflict, which is expected to result in a sharp drop in steel demand in the region, reversing earlier growth expectations. worldsteel cautioned that if hostilities persist beyond the second quarter, the global outlook may face downward revisions, particularly in energy-sensitive regions.<small> </small></p> </div><div id="article-index-2">  <p>  Against this backdrop, India’s steel demand is projected to grow 7.4 per cent in 2026 and accelerate further to 9.2 per cent in 2027, underpinned by broad-based strength across sectors.<small> </small></p> </div><div id="article-index-3">  <p>  “A resilient capital expenditure allocation cycle by Government of India continues to bolster steel demand while nationwide rail network expansion and an affordability-driven surge in consumer durables provides additional structural tailwinds,” the Indian Steel Association told Business Standard.<small> </small></p> </div><div id="article-index-4">  <p>  It added that in spite of the current West Asia crisis impacting all countries globally, the Indian steel industry remains confident of strong growth in steel demand this year.<small> </small></p> </div><div id="article-index-5">  <p>  China, the world’s largest steel consumer, is expected to see a contraction of 1.5 per cent in 2026.<small> </small></p> </div><div id="article-index-6">  <p>  In developing economies excluding China, steel demand growth is expected to moderate to 2.5 per cent in 2026 from around 5 per cent in recent years. This slowdown is primarily due to the contraction in the Middle East and a temporary easing in ASEAN economies following strong growth in 2025.<small> </small></p> </div><div id="article-index-7">  <p>The developed world is expected to see a gradual recovery, with steel demand projected to grow 1.0 per cent in 2026 and 2.3 per cent in 2027, marking a turnaround after three consecutive years of decline. All major developed economies, including the European Union, the United States, Japan, and Korea, are expected to record positive growth in 2027.</p> </div></div></div></div>

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<p>India is projected to be the fastest-growing major steel market, with demand expected to rise by 7.4% in 2026 and 9.2% in 2027, according to the World Steel Association. In contrast, global steel demand is anticipated to grow only 0.3% in 2026 due to geopolitical tensions, particularly in West Asia, which may lead to downward revisions in the outlook. While China faces a contraction of 1.5%, developed economies are expected to recover gradually, with positive growth in 2027.</p>

India leads steel demand growth as global outlook weakens: Report