The Indian iron and steel industry’s sharp turnaround in late 2025 has translated into record-breaking freight movement for the South Western Railway (SWR), which posted its highest-ever monthly freight loading of 5 million tonnes (MT) in December 2025.
The performance marks a 25.4 per cent increase over December 2024 and reflects a decisive shift from export-led dependence to strong domestic consumption-driven growth.
U-Shaped Recovery in FY26
The financial year 2025–26 witnessed a ‘U-shaped’ recovery in key commodities. Mid-year pressures stemming from a prolonged monsoon and cheap imports weighed on prices of iron ore, TMT bars and hot rolled coils (HRC). However, the final quarter saw a sharp rebound, supported by safeguard duties, GST rationalisation and aggressive domestic restocking.
Satya Prakash Shastri, Principal Chief Commercial Manager, SWR, Hubballi, said the railway zone’s record performance confirmed that physical cargo movement mirrored bullish market sentiment.
“The combination of protective safeguard duties, GST reforms and intense domestic restocking suggests a sustained growth trajectory for the Indian iron and steel industry heading into the final quarter of the financial year. The price recovery and year-end restocking triggered an unprecedented surge in logistics within the Ballari-Hosapete steel belt,” he said.
Iron Ore and Steel Lead Growth
Iron ore loading alone touched 2.1 MT in December 2025, registering a robust 38.6 per cent year-on-year growth. This surge was driven largely by front-loading strategies adopted by steel manufacturers securing inventory ahead of anticipated price hikes in 2026.
Steel loading reached 0.91 MT, up 15.6 per cent year-on-year, reflecting strong finished product demand from automotive hubs and construction sites across southern India.
Manjunath Kanamadi, Chief Public Relations Officer (CPRO), SWR, said the zone’s freight earnings for December stood at approximately ₹504 crore, a 12.4 per cent increase over the previous year.
GST Reforms Boost Infrastructure Demand
Industry stakeholders attribute the freight surge partly to GST rationalisation measures implemented in late 2025. Mahendra Singhi, Member of the SWR Zonal Railway Users’ Consultative Committee, noted that the reduction of GST on cement from 28 per cent to 18 per cent in September 2025 significantly lowered project costs.
“The effective reduction in total project costs by 3–5 per cent acted as a major catalyst for infrastructure and real estate. Additionally, lower GST on automotive and consumer durables stimulated demand for HRC and specialised steel,” he said.
With domestic demand strengthening and infrastructure activity accelerating, SWR’s record freight performance underscores the deep interlinkage between steel market recovery and railway logistics expansion, positioning the zone as a key beneficiary of India’s structural industrial realignment.
