India’s steel sector recorded broad-based growth in the first quarter of FY2026-27, with domestic demand expanding faster than production even as the country continued to remain a net importer of finished steel, according to provisional data released by the Ministry of Steel.
Finished steel consumption rose 8.3 percent year-on-year to 41.6 million tonnes during the April-June quarter, while finished steel production increased 5.9 percent to 41.0 million tonnes, reflecting robust domestic demand. The ministry said the sector registered growth across key production and consumption indicators during the quarter.
June Maintains Growth Momentum
Monthly data for June also reflected healthy demand. Finished steel consumption increased 7.2 percent year-on-year to 14.2 million tonnes, while production rose 6 percent to 13.8 million tonnes.
Crude steel output also remained on an upward trajectory. Production grew 3 percent year-on-year to 42.1 million tonnes during the April-June period, while June output increased 3.9 percent to 14.1 million tonnes.
Imports Continue to Outpace Exports
Despite higher domestic production, India remained a net importer of finished steel during the quarter.
Finished steel imports surged 49.2 percent year-on-year to 2.06 million tonnes between April and June, while exports rose 31.4 percent to 1.59 million tonnes during the same period. The ministry noted that the country continued to rely on imports to meet domestic demand.
Steel Prices Ease in June
Domestic steel prices softened in June compared with the previous month.
- TMT (10 mm) prices declined 4.7 percent to Rs 60,068 per tonne
- Hot Rolled (HR) Coil prices fell 0.5 percent
- Cold Rolled (CR) Coil prices slipped 1.1 percent
- GP Sheet prices declined 2.8 percent
Among key raw materials, prices moved in different directions.
NMDC Limited increased its Baila lump ore price by 3.6 percent to Rs 5,700 per tonne, while Baila fines prices rose 3.2 percent to Rs 4,850 per tonne. In contrast, manganese ore prices declined 5 percent, while scrap prices fell 4.4 percent during the month.
Capacity Expansion Continues
The ministry said India’s installed steelmaking capacity currently stands at 221.9 million tonnes per annum, keeping the industry on track toward the 300 million tonnes capacity target under the National Steel Policy by 2030.
Several policy and industry developments also took place during the month. These included the launch of a digital transformation initiative for the steel sector, the grant of Miniratna Category-I status to MECON Limited, an anti-dumping investigation into imports of hot-rolled flat steel from China, Japan and Russia, and the start of construction of JSW Group’s proposed 2 MTPA integrated steel plant in Kadapa, Andhra Pradesh.
On the sustainability front, the ministry said Steel Authority of India Limited (SAIL) at its Rourkela Steel Plant launched a CO₂ Dashboard, describing it as a first-of-its-kind digital platform with full ERP-SAP integration to support the company’s decarbonisation efforts.
