THEBUSINESSBYTES BUREAU

NEW DELHI, SEPTEMBER 3, 2026

India’s steel sector continued to maintain its positive growth trajectory in the first five months of FY27, with domestic consumption, finished steel production and prices showing resilience even as imports surged and the country remained a net importer of finished steel in April-August 2026.

Crude steel production stood at 70.3 million tonnes (Mt) during April-August 2026, up 1.8% from 69.0 Mt in the corresponding period last year. Hot metal production rose 1.9% to 40.0 Mt from 39.2 Mt, while finished steel production recorded a stronger 3.8% growth at 68.1 Mt, compared with 65.6 Mt a year earlier.

The August numbers were relatively steady. Crude steel production was at 14.1 Mt, virtually unchanged year-on-year, while hot metal output declined 1.1% to 8.0 Mt. Finished steel production, however, increased 0.3% to 13.5 Mt from 13.4 Mt in August 2025.

The production profile continues to be dominated by the country's seven major steel producers, which together have annual crude steel capacity of 117.4 Mt and accounted for 39.2 Mt of crude steel, 37.2 Mt of hot metal and 36.5 Mt of finished steel production during April-August 2026. The group comprises SAIL, RINL, NSL, TSL Group, AM/NS, JSL/JSPL and JSW Group.

Remaining producers, with a combined annual crude steel capacity of 105.4 Mt, contributed 31.1 Mt of crude steel, 2.8 Mt of hot metal and 31.7 Mt of finished steel during the period. The public sector accounted for 13.9% of crude steel capacity, 15.8% of crude steel production, 30% of hot metal production and 13.5% of finished steel production.

Demand has emerged as a particularly strong pillar of the sector. Finished steel consumption climbed to 14.3 Mt in August 2026, up 3.9% from 13.8 Mt a year earlier. For April-August, consumption reached 70.3 Mt, registering a robust 7% year-on-year increase from 65.7 Mt.

The improvement in domestic demand has been accompanied by firm steel prices. The average price of 10-mm TMT rose to ₹58,002 per tonne in August, up 2.3% month-on-month and 5.8% year-on-year. Hot-rolled coil prices increased 0.9% from July to ₹70,448 per tonne and were 15.5% higher than a year earlier. Cold-rolled coil prices edged down 0.2% month-on-month to ₹76,462 per tonne but remained 13.3% above August 2025 levels. GP sheet prices rose 0.3% during August to ₹86,668 per tonne and were up 17.7% year-on-year.

The price data, inclusive of GST, is based on average prices across Kolkata, Delhi, Mumbai and Chennai.

Trade, meanwhile, has become an increasingly important feature of the steel market. Finished steel imports rose 8% year-on-year in August to 721.1 thousand tonnes, while the value of imports jumped 23.3% to ₹7,863.1 crore. During April-August, imports surged 29.5% to 3.49 Mt, with their value rising 38.3% to ₹36,193.9 crore.

Exports performed strongly as well. Finished steel exports climbed 31.3% year-on-year to 693.7 thousand tonnes in August, while export value increased 41.5% to ₹5,541.2 crore. In April-August, exports rose 34.1% to 2.99 Mt, with the value increasing 32% to ₹23,646.6 crore. Despite the robust export performance, India remained a net importer of finished steel in quantity terms during April-August 2026.

On the raw material front, domestic iron ore prices softened in August, potentially providing some relief to steelmakers' input costs. NMDC Baila lump ore prices declined 3.7% month-on-month to ₹5,250 per tonne, while Baila fines fell 4.3% to ₹4,500 per tonne. MOIL manganese ore lump prices declined 5% to ₹17,603 per tonne. HMS II scrap, however, increased 3.6% to ₹39,970 per tonne.

Investor sentiment towards the metals sector remained buoyant. The Nifty Metal Index averaged 13,181.8 in August, rising 5% month-on-month and a substantial 41.7% year-on-year. The manufacturing backdrop was softer, with the PMI Manufacturing Index declining 1.3% month-on-month to 52.8 and standing 11% below its year-ago level. The Baltic Dry Index, meanwhile, averaged 2,951.1, up 6.5% from July and 47.5% year-on-year, pointing to firmer global dry-bulk freight conditions.

The government's focus on capacity expansion and operational efficiency is also gathering pace. Union Minister for Steel and Heavy Industries H.D. Kumaraswamy reviewed SAIL's performance, capital expenditure and expansion plans, stressing efficiency enhancement, capacity expansion and faster modernisation to strengthen the company's role in India's steel industry and support the Viksit Bharat vision.

SAIL has also received the Top Employer Certification from the Top Employers Institute, valid until December 2027. The recognition follows its third consecutive Great Place To Work certification and highlights the company's human-resource practices, employee engagement and workplace culture.

Raw material major NMDC reported a sharp increase in iron ore output in August. Production rose 20.8% year-on-year to 4.07 Mt, while sales increased 5.6% to 3.58 Mt. During April-August FY27, NMDC's production and sales stood at 23.23 Mt and 18.72 Mt, respectively. Its Kirandul, Bacheli and Donimalai mines recorded their highest-ever August production.

NMDC has also moved closer to commissioning its 2-Mtpa Nagarnar Pellet Plant, with the successful lighting up of its indurating machine. The equipment will convert green pellets into high-strength iron ore pellets through controlled heating and cooling, marking a critical step in the plant's commissioning process.

International collaboration is simultaneously expanding across technology and investment. The Steel Research and Technology Mission of India (SRTMI) and Sweden's SWERIM have signed an MoU to deepen cooperation in iron and steel research, technology and innovation. The partnership will cover joint research and development, green steel, decarbonisation, circular economy, advanced steels, artificial intelligence and machine learning, digital technologies and capacity building.

Canada is also looking to strengthen its engagement with India's steel value chain. Glenn Purves, Deputy Minister at Global Affairs Canada, met Steel Secretary Sandeep Poundrik to discuss bilateral cooperation, with talks focusing on trade, technology collaboration and investment across the steel sector.

Green steel is gaining greater operational focus within India's major producers. SAIL's Bhilai Steel Plant has launched a CO₂ Dashboard covering Bhilai Steel Plant and Chandrapur Ferro Alloy Plant, enabling daily monitoring of carbon emissions. The data-driven platform is designed to identify deviations, facilitate timely corrective action and strengthen decarbonisation as well as operational efficiency.