Stainless Steel Sector Faces Challenges Amid Rising Imports and Volatility

The Indian stainless steel industry is facing several challenges in FY26, including increased low-cost imports from countries like China and Vietnam, volatile raw material prices, and underutilized capacity. Industry leaders are focusing on skill development to address the workforce challenge, while imports of stainless steel scrap are expected to decline.

The domestic stainless steel industry in India is bracing for a challenging first quarter in FY26, largely due to increasing imports and the volatility of raw material prices, industry experts reveal.

The influx of cheaper imports from China and Vietnam continues to be a significant concern for Indian manufacturers, as confirmed by Indian Stainless Steel Development Association (ISSDA) President Rajamani Krishnamurti. The industry's struggle with volatile key input prices such as nickel and ferroalloys further exacerbates the issue.

Managing Director of Jindal Stainless, Abhyuday Jindal, highlights a 40% underutilization of the country's stainless steel production capacity. In response, the company is focusing on workforce development through its Stainless Academy, while reports from BigMint suggest a 22% increase in consumption projected for FY25.

(With inputs from agencies.)