India’s Steel Sector Records Steady H1 Growth as Domestic Demand Jumps 7.5%
Crude steel output rises 2.9%, finished steel consumption reaches 84.9 million tonnes; September prices show sharp gains
By Suman Munshi
Chief Editor, IBG NEWS
NEW DELHI, October 6, 2026: India’s steel industry maintained a positive growth trajectory during the first half of FY 2026–27, with production continuing to expand and domestic consumption growing at a significantly faster pace. Provisional data for September 2026 released by the Ministry of Steel shows continued momentum across production, consumption, trade and investments in the steel value chain.
Crude steel production increased to 85.1 million tonnes (Mt) during April–September 2026, compared with 82.7 Mt during the corresponding period of 2025, registering 2.9% growth. Finished steel production grew by 3.7% to 81.8 Mt.
At the same time, finished-steel consumption reached 84.9 Mt, up 7.5% year-on-year, highlighting strong domestic demand.
Steel Production: H1 FY 2026–27
| Production | Sep 2026 | Sep 2025 | YoY % | Apr–Sep 2026 | Apr–Sep 2025 | CPLY % |
|---|---|---|---|---|---|---|
| Crude Steel | 14.1 Mt | 13.7 Mt | 3.4% | 85.1 Mt | 82.7 Mt | 2.9% |
| Hot Metal | 7.9 Mt | 7.9 Mt | 0.2% | 48.3 Mt | 47.2 Mt | 2.5% |
| Finished Steel | 13.5 Mt | 13.2 Mt | 1.9% | 81.8 Mt | 78.8 Mt | 3.7% |
September alone saw crude-steel production rise 3.4% year-on-year to 14.1 Mt, while finished steel output increased 1.9%.
Seven Major Producer Groups Lead Output
The seven major producer groups—SAIL, RINL, NSL, Tata Steel Group, AM/NS India, Jindal Stainless/Jindal Steel & Power and JSW Group—accounted for 47.7 Mt of crude-steel production during the first six months of FY 2026–27.
Producer-wise production: April–September 2026
| Producer Group | Annual Crude Steel Capacity | Crude Steel Production | Hot Metal Production | Finished Steel Production |
|---|---|---|---|---|
| Top 7 | 117.4 Mt | 47.7 Mt | 44.8 Mt | 44.1 Mt |
| Remaining Producers | 105.4 Mt | 37.4 Mt | 3.5 Mt | 37.7 Mt |
| Total | 222.9 Mt | 85.1 Mt | 48.3 Mt | 81.8 Mt |
The public sector accounted for 15.5% of crude-steel production, 29.4% of hot-metal production and 13.5% of finished-steel output during the period.
Steel Prices Surge in September
Steel prices recorded substantial month-on-month and year-on-year increases in September.
Average steel prices across Kolkata, Delhi, Mumbai and Chennai
| Product | Jul-26 | Aug-26 | Sep-26 | MoM % | YoY % |
|---|---|---|---|---|---|
| TMT 10 mm | ₹56,698 | ₹58,002 | ₹65,298 | 12.6% | 21.0% |
| HR Coil 2 mm | ₹69,828 | ₹70,448 | ₹76,085 | 8.0% | 26.8% |
| CR Coil 0.63 mm | ₹76,582 | ₹76,462 | ₹84,972 | 11.1% | 28.8% |
| GP Sheet 0.63 mm | ₹86,415 | ₹86,668 | ₹94,148 | 8.6% | 27.7% |
Prices are inclusive of GST and represent average prices in Kolkata, Delhi, Mumbai and Chennai.
The sharpest annual increase among the listed products was recorded by CR Coil, whose price was 28.8% higher than a year earlier.
Domestic Steel Consumption Outpaces Production
Strong domestic demand remained one of the most important features of the industry’s H1 performance.
| Indicator | Sep 2026 | Sep 2025 | YoY % | Apr–Sep 2026 | Apr–Sep 2025 | CPLY % |
|---|---|---|---|---|---|---|
| Finished Steel Consumption | 14.4 Mt | 13.3 Mt | 8.0% | 84.9 Mt | 79.0 Mt | 7.5% |
Consumption in September grew 8%, while cumulative consumption during April–September increased 7.5%.
The faster growth in consumption compared with production also has implications for India’s steel trade balance.
Steel Trade: Imports Continue to Exceed Exports
India imported more finished steel than it exported in volume terms during the first half of FY 2026–27.
Finished Steel — Import & Export
| Indicator | Unit | Sep-26 | Sep-25 | YoY % | Apr–Sep 2026 | Apr–Sep 2025 | CPLY % |
|---|---|---|---|---|---|---|---|
| Imports | ‘000 tonnes | 654.4 | 651.9 | 0.4% | 4,141.8 | 3,344.8 | 23.8% |
| Imports | ₹ crore | 7,496.2 | 5,032.9 | 48.9% | 43,690.1 | 31,205.4 | 40.0% |
| Exports | ‘000 tonnes | 561.8 | 584.0 | -3.8% | 3,547.8 | 2,810.2 | 26.2% |
| Exports | ₹ crore | 4,617.1 | 4,020.4 | 14.8% | 28,263.7 | 21,931.5 | 28.9% |
Net Trade Position
India remained a net importer of finished steel in volume terms during April–September 2026.
An important feature of the trade data is that import volumes increased 23.8% during H1, while export volumes grew 26.2%. However, imports remained higher than exports in absolute volume.
Raw-Material Prices
Raw-material prices showed mixed movements during September.
Domestic Raw-Material Prices
| Commodity | Jul 2026 | Aug 2026 | Sep 2026 | MoM Change |
|---|---|---|---|---|
| NMDC Iron Ore Baila Lump (65.5%, 10–40 mm) | ₹5,450 | ₹5,250 | ₹5,400 | 2.9% |
| NMDC Iron Ore Baila Fines (64%, 0–10 mm) | ₹4,700 | ₹4,500 | ₹4,500 | — |
| MOIL Manganese Ore Lump (Mn 37%, Fe 7.5%) | ₹18,530 | ₹17,603 | ₹17,603 | — |
| Scrap — HMS II | ₹38,580 | ₹39,970 | ₹43,810 | 9.6% |
The strongest monthly movement came from HMS II scrap, which increased 9.6% in September.
Key Economic and Industry Indicators
| Index | Jul 2026 | Aug 2026 | Sep 2026 | MoM Change | YoY Change |
|---|---|---|---|---|---|
| Nifty Metal Index (average) | 12,556.4 | 13,181.8 | 13,053.7 | -1.0% | 32.7% |
| PMI Manufacturing Index | 53.5 | 52.8 | 55.1 | 4.4% | -4.5% |
| Baltic Dry Index (average) | 2,769.9 | 2,951.1 | 3,407.7 | 15.5% | 60.4% |
Sources: NSE, S&P Global and Trading Economics.
Steel Industry Safety Gets a New Institutional Framework
The Ministry of Steel has decided to establish a Steel Industry Safety Council (SISC) to strengthen safety management across the sector.
The apex council will be chaired by the Secretary, Ministry of Steel. A dedicated Steel Industry Safety Directorate (SISD) will provide technical support through safety audits, investigations into serious accidents and development of safety standards suited to Indian operating conditions.
The initiative will cover steel producers as well as mines operated by Central Public Sector Enterprises.
NMDC Strengthens Integrated Iron-Ore Value Chain
NMDC has commissioned its 2-MTPA pellet plant at Nagarnar, Chhattisgarh, completing its ₹5,427-crore integrated project.
The project includes:
- An iron-ore processing plant at Bacheli
- A 135-km slurry pipeline with 15-MTPA capacity
- The Nagarnar pellet plant
The pellet facility uses Straight Grate Induration technology and will enable greater value addition from Bailadila iron-ore fines and slimes.
The project is also expected to reduce dependence on road transportation for moving ore and strengthen NMDC’s integrated presence across the iron-ore value chain.
NMDC produced 4.04 Mt of iron ore in September 2026, an 8% year-on-year increase. Its H1 FY 2026–27 output reached 27.3 Mt, almost 23% above the corresponding period last year.
SAIL and BCCL Sign MoU on Coal Blocks
SAIL and Bharat Coking Coal Limited have entered into an MoU for the joint development and operation of two coal blocks:
- SAIL’s Indikatta Ramnagore Coal Block
- BCCL’s East of Damagoria (Kalyaneshwari) Coal Block in West Bengal
The partnership is expected to strengthen cooperation between the two CPSEs and contribute to the development of domestic coking-coal resources for the steel industry.
AI-Based Safety Surveillance Introduced at Rourkela Steel Plant
SAIL’s Rourkela Steel Plant has commissioned an AI-powered safety surveillance system at Hot Strip Mill-2.
The system employs 10 IP cameras and computer-vision technology to detect helmet violations and automatically activate alarms. Detected incidents are recorded with time stamps.
SAIL plans to expand the technology in future stages to cover additional PPE violations, unsafe activities, fire hazards and other potential workplace risks.
The move represents a growing use of artificial intelligence not only for production and efficiency but also for industrial safety management.
Green Steel Push Gains Momentum
The Ministry of Steel’s Green Steel Initiative is also expanding.
Up to September 2026, 101 distinct steel producers had received Green Steel Certificates through the certification lists issued under the initiative.
Certified products include:
- TMT bars
- HR coils
- CR coils
- Plates
- Wire rods
- Pipes
- Other steel products
A large proportion of certified products received five-star ratings, indicating progress towards lower-emission steel production.
Jadavpur University to Host Green-Hydrogen Research Centre
Jadavpur University, working with SAIL, DVC and HURL, is establishing a ₹8.18-crore Centre of Excellence for green-hydrogen research.
The centre is among four such facilities approved by the Ministry of New and Renewable Energy.
SAIL is expected to test and apply technologies emerging from the research programme at its facilities. The work could support the use of green hydrogen across steel, power and fertiliser production under the National Green Hydrogen Mission.
What the H1 Numbers Tell Us
India’s steel sector enters the second half of FY 2026–27 with a combination of rising demand, expanding production, higher prices and accelerating technological transition.
The headline numbers are particularly significant:
- 85.1 Mt — crude-steel production in H1
- 81.8 Mt — finished-steel production
- 84.9 Mt — finished-steel consumption
- 7.5% — H1 consumption growth
- 4.14 Mt — finished-steel imports
- 3.55 Mt — finished-steel exports
- 27.3 Mt — NMDC H1 iron-ore production
- 101 — steel producers receiving Green Steel Certificates
- ₹8.18 crore — Jadavpur University green-hydrogen Centre of Excellence
The industry’s next challenge will be to balance capacity expansion and domestic demand with raw-material security, workplace safety, import competitiveness and the transition towards lower-carbon steelmaking.
With green steel, artificial intelligence, green hydrogen and integrated raw-material projects gaining importance alongside conventional production growth, India’s steel story is increasingly becoming one of scale combined with technological and environmental transformation.
Source: Ministry of Steel, Government of India; provisional Joint Plant Committee (JPC) data for September 2026.
Data period: April–September 2026, H1 FY 2026–27.
Abbreviations: Mt = Million Tonnes; MTPA/Mtpa = Million Tonnes Per Annum; MoM = Month-on-Month; YoY = Year-on-Year; CPLY = Corresponding Period Last Year.
