Despite the short-term headwinds, all major mills are actively pursuing aggressive expansion plans. AMNS considers India to be the fastest-growing major steel market, with demand favourably supported by infrastructure investment. JSW projects demand growth of 8-10% in FY’26. However, pricing may come to be a sore spot in Q2FY’26, which could impact profitability. JSP expects domestic steel prices to drop by 5-7% q-o-q in Q2FY’26. Even JSW expects realisations to soften in Q2 but aims to offset part of the impact through cost efficiencies and higher sales volumes. SAIL too believes that the monsoon impact will lead to q-o-q price corrections, though expectations are that July’s slide will be offset by a recovery in August and September.
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