India’s rapidly expanding steel industry is expected to create significant growth opportunities for the refractory materials sector over the next five years. According to a report by Choice Institutional Equities, India’s crude steel production is projected to increase from 168.4 million tonnes (MnT) in FY26 to 255 MnT by FY31, driven by rising infrastructure development, manufacturing activity and construction demand.
A major contributor to this growth will be the induction furnace (IF) route, with production expected to rise from 45.8 MnT to 69.4 MnT during the same period. This expansion is likely to increase demand for refractory products such as ramming mass, a critical material used for lining induction furnaces. Unlike steel manufacturers, whose profitability is often influenced by volatile raw material prices, refractory suppliers benefit from recurring and volume-based demand linked directly to steel production.
The report highlights three major growth drivers for the refractory industry: the formalisation of the unorganised market, higher refractory consumption due to increased furnace utilisation and logistics advantages for manufacturers located close to steel clusters in eastern India. It also notes that growing focus on energy efficiency and technological advancements in steelmaking is increasing the need for high-performance refractory materials.
With domestic steel consumption expected to remain strong, supported by government infrastructure projects and industrial expansion, the outlook for refractory manufacturers remains positive. Companies that expand capacity, strengthen supply chains and improve operational efficiency are expected to benefit from India’s long-term steel growth story.
