Steel consumption across India is forecast by the World Steel Association (worldsteel) to reach 172.4 million tonnes in 2026, reflecting a 7.9 per cent increase that places the country ahead of other large economies in pace of growth, according to a statement released on Monday. Domestic consumption is projected to climb to 186.2 million tonnes by 2027, a rise of 8 per cent, according to the industry body's Short Range Outlook for October 2026.

Worldsteel's projections put global steel demand at roughly 1,722 million tonnes through 2026 — holding broadly flat — before a 1.7 per cent increase carries that figure to 1,752 million tonnes the following year.

Forecasts point to a 2 per cent contraction in steel consumption across China, which accounts for more of the world's steel output than any other country, by the time 2026 arrives. The Belgium-headquartered industry group projected that China's rate of decline would ease to one per cent by 2027.

Projected consumption across India's steel sector points to growth of 7.9 per cent in 2026, lifting total volume to 172.4 million tonnes, then a further 8 per cent rise the following year to reach 186.2 million tonnes — a trajectory that keeps the country at the head of the table among large steel-consuming economies.

Expansion across multiple areas of the economy has held up. Building activity tied to public infrastructure projects has been the leading force pushing overall construction output forward. Buyer appetite in the private real estate sector has held up across recent activity.

Renewable energy contracts and expanded factory capacity are lifting output across electrical and mechanical machinery, while the automotive segment draws on household purchasing activity, overseas sales momentum, and policy support from government.

Analysts have projected that appetite for steel across Gulf markets will pick up once trade-route access is restored, geopolitical conditions stabilise, and disruptions to logistics networks ease. Worldsteel's more optimistic scenario pointed to regional steel consumption climbing 11.3 per cent by 2027, a rebound that would bring demand back to the level recorded in 2025.

Forecasts point to a two per cent increase in American steel consumption by 2026. Capital spending on data centres and energy infrastructure — spanning power generation, renewables, and oil and gas — has driven the expansion, with select manufacturing sectors adding a further layer of incremental support.

Worldsteel's outlook for Europe points to a 0.3 per cent contraction in apparent steel consumption across the EU during 2026, followed by a recovery of 3.1 per cent in 2027 — a forecast that represents a downward adjustment of 1.5 percentage points against the organisation's earlier projection for the current year.

Output for 2025 came in above earlier projections, though a notable portion of that upside reflected inventory accumulation by businesses preparing for the Carbon Border Adjustment Mechanism's entry into force in 2026. Residential building permits look to be stabilising near a low point, while project completions across the broader sector have yet to align, and output from vehicle manufacturing adds another layer of unevenness to a recovery that has taken shape more gradually than many had expected.