[SMM Steel] Structural constraints slow India’s transition toward green steel

Published: Apr 29, 2026 19:39

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[SMM Steel] India’s push toward green steel faces significant practical challenges despite strong policy ambitions. Scrap-based production via EAF/IF is seen as the most viable near-term pathway, but logistics disruptions, high freight costs, and reduced scrap exports from Europe are tightening supply conditions. Moreover, scrap alone cannot meet the requirements for high-grade flat steel production, limiting its role in full decarbonisation. While hydrogen-based DRI offers long-term potential, adoption remains limited. As a result, most new capacity still relies on coal-based production, indicating that India’s green steel transition will likely remain gradual, dependent on improvements in scrap supply chains and clean energy availability.

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