India's steel industry maintains robust growth, with local steel demand increasing 9% year-over-year in May 2026 and 8.7% in FY26 so far. A report from Kotak Institutional Equities indicates that the industry's capacity utilization is anticipated to stay above 90% in the medium term, bolstered by strong demand growth expected to exceed capacity expansions. The report highlighted that demand grew by 7.6% in FY26 after four consecutive years of double-digit increases, showcasing the strength of the domestic market. Steel exports rose by 30% compared to the previous year to reach 0.5 million tonnes in May 2026, while imports stayed elevated at 0.7 million tonnes. India's growing infrastructure projects, manufacturing expansion, and urban development are anticipated to keep boosting steel consumption in the years ahead. The report also underscored varying price trends among steel products. Prices of primary rebar fell by approximately Rs. 7,000 (US$ 81.38) per tonne from their peak in April 2026, whereas prices for domestic hot-rolled coil (HRC) stayed quite steady, decreasing by merely around Rs. 1,600 (US$ 19.94) for each tonne during a period of seasonal decline. HRC prices remain lower than China's import parity levels, decreasing the chances of major price adjustments. In the meantime, prices for coking coal have risen moderately, while iron ore prices have mostly stayed within a range, though NMDC iron ore fines prices have grown by approximately 20% compared to levels from March 2026. Kotak anticipates that industry margins will increase in sequence as elevated trade prices from the fourth quarter of FY26 impact FY27 earnings, outweighing the rises in coal and iron ore expenses. $SAIL $TATASTEEL $JSWSTEEL $JINDALSTEL