They also want to manufacture steel

industrial clusters.

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The capacity additions by the new entrants are also tiny in comparison with the mega expansions lined up by the large incumbents. This continued execution of multibillion-dollar capacity expansion even amid a low-price environment reflects management confidence in the sector's long-term fundamentals, said Jhonsa.

PRICE IMPACT

Steel prices have dipped to multiyear lows in India. This is even before the fresh capacity added by the incumbents and the new players becomes operational in coming years, raising concerns of oversupply.

Flat steel used in automobiles and appliances is at a nine-month low and construction steel has dropped to its weakest level in nearly five years amid weak infrastructure demand and oversupply in October. Benchmark hot-rolled coil prices have slid to ₹48,275 per tonne—the lowest since February—while rebar prices are at around ₹47,000 per tonne, the lowest level since November 2020, accord-