Understanding the Current Dip in CRGO Steel Prices in India
- mukesh muke
- Sep 17, 2025
- 4 min read
Updated: Jan 17
Introduction
At S M Steels, we’ve noticed a significant decline in CRGO (Cold Rolled Grain Oriented) steel prices and demand across India as of September 2025. This downturn raises important questions for many businesses: Why is this happening now? Is this a temporary situation? What should we expect next?
In this blog, we will analyze factual, up-to-date data and trends that contribute to the current market dip. Understanding these factors will empower you to make smarter purchasing or inventory decisions during these uncertain times.
The Current Market Landscape
What the Data Shows
Imports are Falling Sharply
In August 2025, steel imports into India declined by approximately 31%. SteelOrbis
Simultaneously, exports rose by about 54%, although India remains a net steel importer. SteelOrbis
Policy and Regulation Tightening for Steel Input Quality
The Indian government has introduced stricter rules requiring imported input materials (slabs, billets, etc.) to comply with BIS (Bureau of Indian Standards) norms, not just the finished product. Argus Media
These regulations reduce import flexibility and can delay shipments or increase costs for non-compliant imports. Argus Media
Weak Demand and Seasonal Slowdown
The monsoon period in India traditionally slows construction activity, which softens demand for steel products (flat/coil sheets, HRC, etc.). Policy Circle+1
Domestic industries such as construction, infrastructure, and consumer appliances—major users of transformer cores—are experiencing slower order inflow. Leads are not converting into purchases as quickly. Policy Circle
Pressure from Cheap Imports, Especially Chinese Steel
Steel from China, sold at discounted prices, has entered the Indian market, pushing down local pricing. Reuters+2Policy Circle+2
Indian steel mills are advocating for safeguard measures (temporary taxes or duties) to counter these imports. Reuters+2Policy Circle+2
Margins Under Pressure for Steel Producers
Falling prices for Hot Rolled Coils (HRC) and other steel inputs are squeezing margins. Input costs (iron ore, coal, etc.) remain high while selling prices slide. The Times of India+3Policy Circle+3Reuters+3
Since CRGO is a specialized steel grade, the impact is magnified by the added costs of production, quality testing, and import constraints.
The Impact on CRGO Steel
CRGO, being a specialty steel material for transformers and electrical applications, experiences the effects of the above factors more acutely:
There is reduced demand from industries that rely on stable, long-term procurement (power utilities, transformer manufacturers). They become cautious amid price volatility and policy changes.
Import delays or higher costs for CRGO inputs due to new quality control rules (BIS compliance) can lead to non-compliant shipments being rejected or delayed.
Suppliers may cut prices or offer discounts to move inventory, lowering market price benchmarks for CRGO materials (coils, laminations).
Buyers are postponing purchases, expecting prices to fall further, which weakens spot demand.
Implications for Buyers and Distributors
If you are a buyer of CRGO steel (transformer manufacturer, distributor, etc.), or a seller like S M Steels, here are some practical implications and strategies:
| Situation | Implication | Suggested Action |
|------------------------------------------------|--------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|
| Declining CRGO spot prices | You may be able to negotiate better purchase terms or delay procurement if you have flexibility. | Lock in favorable quotes now for future deliveries; consider buying in smaller lots to reduce risk. |
| Uncertain import quality / delays | Risk of paying for non-compliant material or having your project delayed. | Always verify BIS-certified suppliers; request documentation; do sample testing. |
| Market oversupply & buyer caution | Leads may drop; some buyers may delay orders. | Maintain strong relationships with clients; offer flexible payment or delivery terms; highlight quality/durability advantages. |
| Margins squeezed for suppliers | Profit margins may reduce; inventory holding costs rise. | Reduce holding costs; optimize stock; try sourcing from lower import cost channels that meet quality; highlight cost-per-performance to buyers. |
Outlook: What to Watch Next
To predict when the CRGO market might recover or stabilize, keep an eye on these indicators:
Policy Updates — Monitor any final decisions on safeguard duties, new import-quality rules, or tax changes on steel imports.
Import Data — Track monthly and quarterly steel import/export volumes. A sustained drop in cheap imports could ease pressure.
Infrastructure & Transformer Tenders — Watch for government investment in power, grid upgrades, EV charging, and renewable integration. New transformer orders will drive CRGO demand.
Raw Material Cost Moves — Keep an eye on costs of silicon steel inputs, electricity, and steel-making energy. If those drop, cost pressure eases.
Seasonal Demand Changes — Post-monsoon and winter months usually see a pickup in construction and industrial activity.
Conclusion
The current downturn in the CRGO steel market is driven by a mix of import pressure, regulatory tightening, seasonal demand softening, and falling steel input prices. While some of these factors are short-term (monsoon, seasonal lag), others (policy, imports) are structural and likely to shape the market for months ahead.
For businesses involved in CRGO—both buyers and suppliers—it’s a time for caution, smart negotiation, rigorous quality control, and flexible procurement strategies. At S M Steels, we are closely monitoring these trends, ensuring that our CRGO coil and lamination supplies meet the required standards, and offering steady reliability despite market volatility.
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