Why major steelmakers are in the Competition Commission of India's crosshairs

Builders alleged that steelmakers had colluded to increase prices

• CCI finds 28 steel makers, including Tata Steel, guilty of price collusion
• 56 top executives held liable for cartelisation between 2015 and 2023
• Steel price hikes impacted real estate costs and led to industry complaints

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An anti-trust probe initiated on 28 steel makers, including Tata Steel and JSW Steel, has found that these companies have breached antitrust rules by colluding over pricing, according to a Reuters report citing a confidential document dated October 6, 2025, which has not been made public.

The Competition Commission of India (CCI) has also held 56 top executives, including JSW's Managing Director Sajjan Jindal, Tata Steel CEO T.V. Narendran and four former SAIL chairpersons, liable for price collusion over varying periods of time between 2015 and 2023, according to a CCI order, quoted by Reuters, in a report published on January 6.

The probe revives long-standing questions around pricing power, market concentration, and competition in India’s steel industry. Here’s a closer look at why the CCI stepped in and what the investigation entails:

When did the probe start and why?

Steelmakers saw a sharp post-pandemic surge in demand in 2021, driven by a recovery in the automobile sector and a pick-up in infrastructure spending. Supply-side constraints, including restrictive measures in China, added to the momentum.

Against this backdrop, steel prices rose steeply, with per-tonne prices climbing by about 45 percent by November 2020 and continuing to move higher thereafter.

From early 2021, there were near-monthly increases in prices across product categories, including cold-rolled coils, TMT bars, and steel wires.

The steelmakers argued that rates are still lower than international prices and cited robust demand from the auto sector as one of the reasons.

Steelmakers had also contended that a post-COVID upsurge in demand and prices for key inputs such as iron ore and coking coal had forced them to hike prices, as did a sharp rise in international logistics costs.

Major Indian steelmakers often buy a significant part of their iron ore and coking coal supplies from overseas markets. Steelmakers and market experts noted that then-trade chokepoints globally due to the pandemic and resulting restrictions also contributed to raw material shortages, thereby driving up prices.

A report from the Ministry of Mines showed that Indian imports of iron ore declined sharply during the pandemic, with imports for 2020-21 being at 7.24 million tonne, and that of 2021-22 being at 6.68 million tonne, compared to 7.51 million tonne in 2019-20.

The value of the imported iron ore in 2021-22 rose sharply to Rs 3,539 crore, from Rs 844 crore the year prior, reflecting significant price inflation for iron ore in global markets.

In February 2021, CCI launched a probe to check if steel companies have formed a cartel. Union Transport Minister Nitin Gadkari had alleged that steel companies were indulging in cartelisation.

The probe came after several real estate developers’ associations sought government intervention over spiralling steel and cement costs, which raised their construction costs by 10-20 per cent. The watchdog raided some small steel companies as part of an investigation into the industry in 2022, Reuters reported and later expanded the investigation to 31 companies and industry groups, from the initial nine companies that were highlighted by the builders.

What is the steel price collusion allegation about?

Steel price collusion refers to a situation where steel producers coordinate prices or supply instead of competing independently. Such coordination, often done covertly, distorts the market by keeping prices artificially high and limiting choice for buyers. This practice violates competition laws as it allows companies to boost profits at the cost of consumers and downstream industries.

Why did developers and construction companies flag steel pricing as a concern in 2021?

Real estate sector had already been facing headwinds owing to stalled construction due to COVID-19 for most of 2020. The sharp uptick in steel prices worsened their situation, forcing many to halt construction work, thereby impacting the delivery of the projects.

By late 2021, the developers, unable to absorb the increased costs, decided to pass on the additional costs to homebuyers, leading to potential price hikes for ready flats. Builders faced an uphill task of further convincing the customers of this additional burden.

According to real estate experts, while the cost of steel as a share of overall construction costs may vary according to the location, the range is around 15-20%. That translates to an impact of Rs 1,500 to Rs 3,000 on a per square foot basis, representing a significant cost line item for developers.

Some chapters of CREDAI, India's top real estate lobby representing large developers, also threatened to stop work on real estate projects, a major generator of blue-collar jobs, due to rising prices of inputs such as steel and cement.

Finally, a case was initiated in 2021 based on a complaint from a group of builders, the Coimbatore Corporation Contractors Welfare Association. The association alleged that the steel manufacturers worked together to artificially increase steel prices by approximately 55% over a six-month period to March 2021 and limited supply to builders and consumers. A state court subsequently ordered the CCI to investigate the complaint.

What action can the CCI take against steelmakers?

The CCI action against the steelmakers could similar to that taken for the cement manufacturers, according to Dhruv Goel, chief executive officer of BigMint, a market analytics firm.

In  2016, the watchdog had slapped approximately Rs 6,300 crore in penalties on 11 cement companies, including UltraTech Cement Ltd, ACC Ltd, as well as industry body Cement Manufacturers' Association (CMA) for indulging in cartelization.

"We could see the watchdog impose penalties on the companies once found guilty, might also direct the companies in the association to not publish certain  sensitive data like prices, production, and capacity utilization via industry bodies," Goel said. He added that the market believes any move by the CCI could be aimed at preventing steelmakers from taking undue advantage following the imposition of the safeguard duty.

According to BigMint data, leading Indian steelmakers have raised list prices of hot-rolled coil (HRC) and cold-rolled coil (CRC) by INR 1,000-2000/tonnes (t) ($11-22/t) on 3 January 2026 after increasing them by 750-1,000/t ($8-11/t) in late December.