Daijiworld Media Network - New Delhi

New Delhi, May 17: India has emerged as one of the fastest-growing steel markets globally as steel prices witnessed an upward trend across major international markets in April and early May, according to a report by Goldman Sachs.

In its “Global Steel: The Steel Market Barometer – May Update” report, Goldman Sachs stated that average hot rolled coil (HRC) prices increased in almost all major regions during April.

According to the report, Brazil recorded the highest month-on-month rise in HRC prices at 10 per cent, followed by Japan at 6.5 per cent and China at 2.9 per cent.

“On a year-to-date basis, Brazil’s HRC steel price performance has been the strongest in our sample at 21 per cent, followed by the US at 15 per cent, with other regions also showing increases between 6 per cent and 13 per cent,” the report stated.

India continued to register strong growth amid the global uptrend. The report noted that India’s crude steel production rose 11 per cent year-on-year in March, compared to 10 per cent growth on a year-to-date basis and 7 per cent growth in February.

Long steel prices also strengthened across major markets during April. Brazil recorded a 12 per cent rise in rebar prices, while prices increased by 6.9 per cent in Europe and 6.1 per cent in the Black Sea region.

On the supply side, China’s steel production continued to decline, with output falling 3.2 per cent year-on-year during the first two weeks of May.

Goldman Sachs said that while China’s long-term capacity reduction plans and anti-overcapacity measures remain in place, execution is expected to be delayed in 2026.

The report also highlighted mixed trends among major steel-producing regions. Europe’s crude steel production rose 16 per cent month-on-month in March, though it remained lower on a yearly basis.

In the United States, average weekly steel production increased by 3 per cent in April, while capacity utilisation stood at an average of 79.6 per cent.

Goldman Sachs further noted that infrastructure activity in China remained resilient despite weakness in the property sector, while manufacturing activity improved and construction activity softened.

The report projected broadly stable steel prices across major global markets through 2026, with US steel prices expected to remain stronger than those in Europe, China and Brazil.