12/07/2026
STEEL MARKET UPDATE!!!!
India Accelerates Green Steel Transition
India's Ministry of Steel is finalising a major financial support package worth approximately $529 million to reduce carbon emissions across the country's steel sector. The initiative, titled the 'National Strategy for the Sustainable Development of the Secondary Steel Industry,' is expected to be submitted to the Indian Cabinet for consideration and final approval before implementation begins.
The programme will cover all steel producers in the country, though the bulk of the funding is earmarked specifically for secondary metallurgy enterprises. Its core aim is to motivate companies, through financial and tax incentives, to shift toward eco-friendly technologies and use alternative raw materials in their manufacturing processes, thereby reducing the industry's overall carbon footprint.
This initiative comes at a critical time. India's steel sector is among the country's highest carbon-emitting industries, accounting for around 12 percent of India's total greenhouse gas emissions. Official data show the industry's emission intensity currently stands at about 2.55 tonnes of CO₂ per tonne of crude steel, notably higher than the global average of around 1.9 tonnes. Closing this gap is seen as essential to meeting India's long-term climate commitments.
In a related development tied to the same decarbonisation push, the Indian government has approved three pilot hydrogen projects for steel production, backed by roughly $42 million in financial assistance, as part of the National Green Hydrogen Mission under the Ministry of New and Renewable Energy. The projects are expected to be completed within the next three years. These pilots will explore producing direct reduced iron (DRI) using 100 percent green hydrogen, using hydrogen in blast furnaces to cut coal and coke use, and injecting hydrogen into vertical-shaft-based iron-making units.
Together, these steps signal India's growing commitment to building a cleaner, more sustainable, and globally competitive steel industry.
