'Oversupply is temporary, a growing India will absorb it'

India’s rapid urbanization, infra push will drive steady growth in steel use: JSW Steel CEO

- Dipali Banka, Nehal Chaliawala & Abhishek Law

India’s largest steelmaker JSW Steel Ltd expects the oversupply in India to be short-lived, with the longterm demand set to stay strong, joint managing director and chief executive officer (CEO) Jayant Acharya told Mint in an interview. He said the temporary supply-demand mismatch, caused by several large capacity additions coming online at once, will be absorbed as the country’s rapid urbanization, infrastructure push and rising consumption drive steady growth in steel use in the coming years.

Domestic steel prices are currently under pressure despite safeguard duties on imports, underscoring the industry's tightrope between short term surplus and long-term expansion.

Acharya’s outlook suggests bullishness on India’s growth-led demand cycle even as the global market grapples with cheap imports and trade protection measures.

“I am not at all worried about the capacity. Yes, capacities are lumpy; so when they come in a few months' gap, you may see a little bit of supply exceeding demand, which always then evens out," said Acharya, adding, “But I do not see any reason for concern at all.”

Since the beginning of fiscal year 2026 (FY26), China’s hot-rolled coil (HRO) prices have risen 4.5% in rupee terms, while domestic prices fell 5% despite a 12% safeguard duty, according to an Elara Capital report of October. China’s HRC prices act as a lead indicator for global steel prices.