The World Steel Association projects the global demand for steel to post a modest growth of 1.2 per cent in 2025 after a 0.9 per cent decline in 2024. Contrast this with India’s 8 per cent projected growth in steel demand this year, driven by infrastructure investments, and it comes as no surprise that steel imports are rising. In response to rising imports, the Union Ministry of Steel has proposed doubling the basic customs duty on finished steel products to 15 per cent, up from the current 7.5 per cent, notes Mrityunjay Kumar Srivastava, Head of Supply Chain Management, Tata Projects. With this move, the Government hopes to curb the influx of cheaper steel imports and bolster domestic manufacturers. While these tariffs support local industries, he points out that they also present challenges for companies like Tata Projects, saying, “Increased import costs can strain budgets and affect project timelines.” “Fluctuating tariffs create volatility in project budgets, making financial planning increasingly challenging,” agrees Shraddha Kedia-Agarwal, Director, Transcon Developers. “In our experience, the short duration of validity for purchase orders – sometimes as brief as a single day – further complicates the procurement process. Such unpredictability affects developers as well as suppliers and contractors across the construction value chain.” Volatility in steel pricing presents a hurdle in the use of steel for construction, says Nandakumar PS, Head of Projects, Assetz Property Group. “Average steel rebar prices saw a cumulative increase of Rs 2,400 per tonne over two consecutive weeks in late September and early October 2024.” Vaibhav Kulkarni, Senior General Manager, Satec Envir Engineering, points out that major projects (like the Mumbai Coastal Road, metro expansions and upcoming infrastructure corridors) are steel-intensive. So, any tariff-induced cost increase could inflate project budgets and timelines. Further, high steel costs could discourage new commercial and residential developments or lead to budget overruns. Nandakumar wants the Government to closely monitor this trend to prevent prices from escalating, which could ultimately affect end consumers. In the view of Rakesh Reddy, Director, Aparna Constructions, a nuanced approach is needed to ensure that tariffs do not inadvertently harm downstream industries pivotal to India’s economic growth, like construction, especially the rapidly growing affordable housing segment, as it is increasingly susceptible to margin attrition. Supply gaps The construction industry is looking for stability in steel pricing. For this, government action must be two-pronged, focused on the supply side as well as the demand side. Ensuring a steady supply of high-quality steel is crucial, says Srivastava. “Global supply chain disruptions and fluctuating steel prices can impact project timelines and budgets. For instance, steel prices surged by over 50 per cent in 2021 due to supply chain issues.” On the supply side, he says the Government could consider providing incentives for domestic steel manufacturers to increase their production capacity and invest in advanced technologies to help reduce reliance on imports and enhance competitiveness. “Tariffs may shield local steel producers in the short term, but if local manufacturers do not invest in advanced production or quality improvements, it can hamper competitiveness in the long run,” agrees Kulkarni. He advocates tax incentives or subsidies to steelmakers who invest in developing advanced steel products, especially in the development of innovative alloys, coatings and modular building systems tailored to the Indian climate. For instance, in the coastal cities of Maharashtra, humidity and salt exposure can increase the risk of corrosion if the steel components are not properly coated or maintained. “Corrosion-resistant steel for coastal regions is essential,” agrees Reddy. “India’s vast coastline requires innovative materials like weathering steel or more affordable alternatives to meet the growing demand.” “Considering that the application of steel components like decking sheets, steel walls and roofing comes with challenges, including vulnerability to corrosion in coastal regions, high initial costs and logistics complexities, advancements in protective coatings and pre-engineered steel elements could greatly enhance the adoption of steel in construction,” adds Kedia-Agarwal. “The industry faces a gap in the availability of standardised components and robust supply chains for specialised steel-based solutions.” Srivastava also proposes investments in R&D to explore innovative steel composites and sustainable construction practices. While the choice of steel components in construction is driven by structural requirements, project specifications and environmental considerations, he observes that advancements in lightweight steel composites and modular steel construction could further enhance efficiency and sustainability. There is a significant gap in customisable prefabricated steel systems that can cater to the diverse requirements of residential, commercial and industrial projects, agrees Reddy. “Modular designs offering flexibility and ease of assembly could transform construction efficiency in urban and rural settings. Advanced roofing solutions that are lightweight, thermally efficient and noise-reducing are also lacking. Expanding the availability of high-performance decking sheets, specifically engineered for earthquake resistance or industrial load-bearing applications, would further strengthen India’s infrastructure sector.” Affordable insulated steel panels tailored for India’s hot and noisy environments are also a critical need to address challenges related to thermal conductivity and acoustic insulation but they are currently out of reach for many developers owing to high costs, says Reddy. JVs with global experts would help bring high-end steel manufacturing technology to India; this is another area Kulkarni would like the Government to focus on. Ease production Easing manufacturing and the distribution of finished steel products would help increase the supply of steel. For instance, Kulkarni points out that creating steel fabrication clusters within Maharashtra and supporting small and medium manufacturers could help increase the local availability of engineered steel components. Supporting scrap collectors and recyclers would increase the supply of recycled steel, reducing the country’s carbon footprint. The Government could focus on incentivising domestic steel production, adds Reddy. “Policies that promote capacity expansion, improve energy efficiency and support innovation in steel manufacturing can help bridge the demand-supply gap. Additionally, measures such as subsidies for green steel production or investments in infrastructure for recycling could align with sustainability goals while bolstering the sector.” Transporting steel components and handling them on construction sites can be challenging, according to Srivastava, especially in areas with limited accessibility and inclement weather, requiring contingency plans to address potential delays. So, Kulkarni advocates the upgradation of ports, roads and railway lines to reduce transportation bottlenecks and the cost of steel distribution. “Advanced tools like building information modelling (BMI) and finite element modelling are essential for the accurate engineering associated with steel construction,” observes Srivastava. “These tools facilitate the creation of intricate designs and precise fabrication processes, reduce errors and ensure structural integrity.” Kulkarni makes a case for more comprehensive training programmes for workers and engineers on installation techniques, corrosion prevention and modern construction methods (such as integrating steel decking, advanced welding and corrosion management). “Industrial training institutes (ITIs), polytechnics and private player collaborative efforts to develop such specialised courses and certifications would help create more human resources as well as elevate steel construction standards,” he says. “Simplifying regulatory procedures and reducing bureaucratic hurdles could facilitate smoother operations for steel manufacturers and construction companies,” adds Srivastava. Differential tariffs Reddy proposes the introduction of a differential tariff structure. “Products that are readily available domestically could have higher tariffs, while those with limited domestic production might face lower or no tariffs. This approach would encourage local production while allowing critical imports to continue without major cost implications.” Kulkarni advocates duties primarily on products that India can produce in sufficient quantity and quality, such as structural steel, rebars, hot-rolled coils and sheets, and the lowering of duties or exemptions on steel products that are not made locally or that local manufacturers cannot supply competitively, such as high-grade electrical steel, high-grade stainless steel and weathering steel. Another potential solution, according to Kedia-Agarwal, is to fix steel prices for a finite period, allowing developers to procure materials at predictable rates without worrying about sudden cost escalations. Srivastava also sees room for the review and renegotiation of trade agreements to prevent the circumvention of tariffs through third-party countries, and thus protect the domestic market from unfair competition. If all these measures are taken on the supply side, and on the demand side the Government continues to invest in infrastructure projects, domestic steel demand would be stimulated and local manufacturers could enjoy a stable market, says Srivastava. A win-win situation indeed! Tips to successfully apply steel to different buildings Steel offers significant structural benefits – strength and durability – and aesthetic possibilities, and its application in components like decking sheets for flooring, steel sheets for walls and steel roofing is integral to many modern construction methods. However, the challenges associated with using steel components, such as cost, thermal conductivity, corrosion and construction complexity, play a substantial role in shaping the design approach. Ismita Singh, Head Architect, Nirman Consultants, explains how understanding and addressing these challenges can help leverage steel’s unique properties to achieve both functional and artistic goals in different building projects: Composite building: As steel is a high conductor of heat, thermal bridging in walls, roofs and floors can necessitate advanced insulation systems. For example, in a composite building, we specified insulated steel panels with built-in thermal barriers to meet energy code requirements. Industrial building: In high humidity environments such as coastal areas, we have opted for galvanised or coated steel products and ensured proper drainage to mitigate water retention on the roofing and flooring systems. Office: Steel can transmit sound, which can create acoustic challenges. To address this, we incorporate sound-dampening layers or composite materials alongside steel. For example, in a high-rise office design, we used steel decking with an additional concrete topping for flooring to reduce noise transmission. In another office building, we used steel decking sheets for floors to achieve quick construction timelines and addressed the challenge of vibration with concrete topping and beam optimisation. Warehouse: Steel’s high strength allows for long spans and flexible layouts but it also necessitates careful consideration of deflection and vibration. In a recent warehouse project, we used composite steel decking sheets to achieve longer spans while maintaining structural performance. Green building: Steel is recyclable, which aligns with sustainability goals, but its initial production is energy-intensive. To tide over this duality in a green building project, we prioritised steel components with high recycled content and incorporated designs for disassembly to support future reuse. Residential building: In a contemporary residential project, we used exposed steel sheets for interior walls to exhibit steel’s clean, modern look, balancing industrial aesthetics with functional performance. In other residential projects, we have used steel roofing for its durability and lightweight properties, with overhangs and coatings to address corrosion and thermal issues. Quotes While tariffs support local industries, they also present challenges for companies like Tata Projects. - Mrityunjay Kumar Srivastava, Head of Supply Chain Management, Tata Projects Volatility in steel pricing presents a hurdle in the use of steel for construction. - Nandakumar PS, Head of Projects, Assetz Property Group The development of innovative alloys, coatings, and modular building systems tailored to the Indian climate would boost the industry. - Vaibhav Kulkarni, Senior General Manager, Satec Envir Engineering Affordable insulated steel panels tailored for India’s environment are a critical need but they are currently out of reach due to high costs. - Rakesh Reddy, Director, Aparna Constructions Fix steel prices for a finite period, to allow developers to procure materials at predictable rates. - Shraddha Kedia-Agarwal, Director, Transcon Developers Understanding and addressing challenges associated with using steel components can leverage its unique properties. - Ismita Singh, Head Architect, Nirman Consultants Quick Bytes Incentivise advanced and green steel production Introduce differential tariffs Lower duties on niche imports Simplify regulatory processes