SWR rides steel sector rebound with record freight load

Hubballi: While Indian iron and steel industry is witnessing a robust structural realignment, characterised by a sharp price recovery in late 2025, and a historic surge in domestic logistics activity, the South Western Railway (SWR) emerged as a central beneficiary of this momentum, reporting its highest-ever monthly freight loading in Dec 2025, as the market pivoted from global export dependency towards domestic-led growth.The financial year 2025–26 was defined by a ‘U-shaped' recovery for key commodities. After facing downward pressure mid-year due to a prolonged monsoon and an influx of cheap imports, prices for iron ore, TMT bars, and hot rolled coils (HRC) surged in the final quarter.
Satya Prakash Shastri, principal chief commercial manager, SWR, Hubballi, told TOI that the record performance of SWR in Dec 2025 confirmed that physical movement of goods matched 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.""In Dec 2025, SWR achieved a record monthly freight loading of 5MT, representing a 25.4% increase over Dec 2024. Iron ore loading reached 2.1MT, a 38.6% increase year on year. This was driven by ‘front-loading' strategies as steel plants secured inventory ahead of anticipated 2026 price hikes," he explained.Manjunath Kanamadi, CPRO, SWR, asserted that steel loading reached 0.91 MT, up 15.6% year on year. "This highlights a strong ‘finished product pull' from automotive hubs and construction sites across Southern India. The financial impact was that SWR freight earnings for Dec reached approximately Rs 504 crore, a 12.4% increase over the previous year," he added.Mahendra Singhi, member, SWR zonal railway users' consultative committee, noted that a critical driver of this momentum was rationalisation of GST slabs implemented in late 2025. "The reduction of GST on cement from 28% to 18% in Sept 2025 effectively lowered total project costs by 3–5%, acting as a massive catalyst for infrastructure and real estate. Furthermore, the drop in GST for automotive and consumer durables stimulated significant demand for HRC and specialised steel," he added.