India’s steel industry continued its growth trajectory during the first quarter of Financial Year 2026, recording higher production, increased consumption and continued investment in capacity expansion despite global economic uncertainties and fluctuating commodity prices.
Latest data released by the Ministry of Steel shows that the country’s steel sector remained resilient during the April-June 2026 period, supported by strong domestic demand from infrastructure projects, housing construction, manufacturing activity, railways, automobiles and capital goods industries.
The figures highlight India’s emergence as one of the world’s fastest-growing steel markets and reinforce the sector’s importance in achieving the country’s long-term industrial and economic development goals.
Crude steel production registers steady growth
India’s crude steel production rose to 42.1 million tonnes during the first quarter of FY2026, representing a growth of 3 Percent compared to 40.8 million tonnes produced during the same period of the previous financial year.
The increase reflects continued expansion in production capacities and sustained demand from key sectors of the economy.
Finished steel production recorded even stronger growth during the quarter. Output increased by 5.9 Percent to reach 41 million tonnes compared to the corresponding period of FY2025.
Hot metal production, a critical intermediate product in steel manufacturing, also registered positive growth. Production reached 23.5 million tonnes during the quarter, up 1.4 Percent year-on-year.
The data suggests that steel producers continued to operate at healthy utilisation levels despite global trade uncertainties and changing market dynamics.
June 2026 alone witnessed strong performance across production categories.
Crude steel production during the month stood at 14.1 million tonnes, reflecting a year-on-year increase of 3.9 Percent.
Finished steel production rose by 6 Percent during June to 13.8 million tonnes, indicating that the growth momentum remained intact throughout the quarter.
Industry analysts believe the growth in output reflects confidence among steel producers regarding future demand and economic activity.
One of the most significant developments during the quarter was the sharp rise in domestic steel consumption.
Finished steel consumption increased by 8.3 Percent year-on-year to 41.6 million tonnes during April-June 2026, compared to 38.4 million tonnes during the same period last year.
The pace of consumption growth significantly exceeded the growth in production, highlighting strong underlying demand within the domestic economy.
Consumption during June alone reached 14.2 million tonnes, registering a 7.2 Percent increase compared to June 2025.
The rise in steel demand is being driven by multiple sectors.
Infrastructure development remains a major contributor, with government spending on highways, railways, airports, ports, metro rail systems and urban infrastructure continuing at a rapid pace.
The construction sector, which accounts for a substantial share of steel demand, has also remained strong due to ongoing residential, commercial and industrial projects across the country.
Manufacturing industries, including automobiles, engineering goods, machinery and consumer durables, have further supported steel consumption.
The robust demand figures indicate that India’s economic growth continues to translate into higher consumption of core industrial materials.
Steel sector supports India’s infrastructure push
The performance of the steel sector is closely linked to India’s broader infrastructure ambitions.
Large-scale projects under programmes such as Bharatmala, Sagarmala, Dedicated Freight Corridors, Smart Cities Mission, PM Gati Shakti and railway modernisation continue to generate significant demand for steel products.
The government’s emphasis on capital expenditure has created a strong demand environment for steel manufacturers.
The expansion of renewable energy infrastructure, including solar parks, wind energy installations and transmission networks, has also contributed to steel consumption.
Experts note that as India seeks to become a developed economy by 2047, steel demand is expected to grow steadily, making capacity expansion and technological modernisation increasingly important.
Despite strong domestic production, India continued to remain a net importer of finished steel during the first quarter of FY2026.
Both imports and exports recorded significant growth during the period. However, imports expanded at a much faster pace.
Finished steel imports rose by 49.2 Percent to 2.06 million tonnes during April-June 2026.
Exports also increased substantially, growing by 31.4 Percent to 1.59 million tonnes.
The import-export imbalance resulted in India continuing as a net importer of finished steel during the quarter.
In monetary terms, steel imports were valued at Rs 20,214.5 crore during the quarter.
Exports, meanwhile, were valued at Rs 12,475.2 crore.
The rising imports have raised concerns among domestic steel producers, particularly regarding low-priced shipments from some international markets.
Industry representatives have argued that unfair pricing practices by foreign producers could affect the competitiveness of Indian manufacturers.
These concerns have contributed to greater policy attention towards trade remedies and import monitoring.
Government initiates anti-dumping investigation
Reflecting industry concerns, the Directorate General of Trade Remedies (DGTR) initiated an anti-dumping investigation during the quarter.
The investigation focuses on imports of hot-rolled flat steel products from China, Japan and Russia.
The move follows complaints from domestic steel producers alleging unfair pricing practices that may be harming Indian industry.
Anti-dumping investigations are conducted to determine whether imported products are being sold below fair market value and whether such imports are causing injury to domestic manufacturers.
If evidence of dumping is established, authorities may impose anti-dumping duties to protect domestic producers.
The investigation is being closely watched by steel manufacturers, traders and market participants.
Steel prices ease during June
While demand remained strong, steel prices witnessed a modest correction during June 2026.
The average price of 10 mm TMT bars declined by 4.7 Percent month-on-month to Rs 60,068 per tonne.
Hot rolled coil prices fell by 0.5 Percent to Rs 70,108 per tonne.
Cold rolled coils and galvanised sheets also recorded marginal declines during the month.
The softening in prices was attributed to changing market conditions, inventory adjustments and movements in raw material costs.
However, despite the month-on-month decline, steel prices remained considerably higher compared to June 2025.
Galvanised sheets recorded one of the strongest annual gains, with prices rising 15.8 Percent year-on-year.
The continued strength in annual price levels reflects sustained demand and relatively firm input costs.
The steel industry’s cost structure remained influenced by varying trends in raw material prices.
State-owned mining company NMDC Limited increased iron ore prices during June.
Baila Lump ore prices rose by 3.6 Percent to Rs 5,700 per tonne.
Iron ore fines increased by 3.2 Percent to Rs 4,850 per tonne.
Higher iron ore prices generally increase production costs for steel manufacturers and can influence finished steel prices over time.
In contrast, manganese ore prices declined by 5 Percent during the month.
Imported HMS-II scrap prices also eased, falling by 4.4 Percent.
The mixed movement in raw material costs provided some relief to steel producers while simultaneously creating challenges in forecasting future production expenses.
India continues capacity expansion drive
India’s total steelmaking capacity remained at 221.9 million tonnes per annum during the quarter.
The figure represents significant progress towards the National Steel Policy target of achieving 300 million tonnes per annum capacity by 2030.
The policy envisions transforming India into a globally competitive steel-producing nation capable of meeting rising domestic demand while strengthening export competitiveness.
Capacity expansion remained a key theme during the quarter.
The JSW Group announced the commencement of construction of its proposed 2 million tonnes per annum integrated steel plant in Kadapa, Andhra Pradesh.
The project is expected to contribute to regional industrial development, employment generation and future steel production capacity.
Industry experts believe that additional investments in steelmaking facilities will be necessary to meet projected demand growth over the coming decades.
NMDC reports strong Iron ore production growth
Iron ore production remained robust during the quarter, providing support to the steel industry’s raw material requirements.
NMDC Limited reported a 44 Percent year-on-year increase in iron ore production during June 2026.
Output reached 5.15 million tonnes during the month.
Cumulative iron ore production during the April-June quarter stood at 15.10 million tonnes.
The strong growth reflects increased mining activity and efforts to ensure adequate raw material availability for domestic steel producers.
A stable supply of iron ore remains essential for sustaining growth in steel production and reducing dependence on imports.
Alongside production growth, the Ministry of Steel continued efforts to modernise the industry through digital technologies.
A Chintan Shivir organised during June focused on accelerating digital transformation across the steel sector.
The initiative encouraged companies to adopt advanced technologies such as artificial intelligence, automation, predictive maintenance systems, digital mining solutions and smart manufacturing processes.
Officials believe that technology adoption can significantly improve productivity, reduce operational costs, enhance quality control and strengthen global competitiveness.
The ministry has identified digitalisation as a critical component of the industry’s long-term growth strategy.
MECON receives Miniratna Category-I status
In another important development, the government granted Miniratna Category-I status to MECON Limited.
The upgraded status provides the public sector engineering consultancy greater financial and operational autonomy.
The move is expected to strengthen MECON’s ability to undertake larger projects, pursue expansion opportunities and support India’s industrial development initiatives.
The recognition also reflects the company’s growing role in engineering and infrastructure projects linked to the steel sector.
Environmental sustainability remained a major focus area for the industry during the quarter.
As global attention increasingly shifts towards decarbonisation and green steel production, Indian steel companies have intensified efforts to reduce emissions and improve environmental performance.
At Steel Authority of India Limited’s Rourkela Steel Plant, a fully ERP-SAP integrated carbon dioxide dashboard was launched to strengthen emissions monitoring and support decarbonisation initiatives.
The digital platform is expected to help track emissions more effectively and support sustainability planning.
Meanwhile, SAIL’s Barsua-Taldih Iron Mines undertook large-scale plantation drives as part of Van Mahotsav 2026, reinforcing environmental conservation efforts within the mining sector.
These initiatives align with broader national and global goals aimed at reducing industrial emissions while maintaining economic growth.
Outlook remains positive
The first quarter performance indicates that India’s steel industry remains on a strong growth path.
Higher production, rising consumption, ongoing capacity expansion and continued infrastructure spending have created a favourable environment for the sector.
While challenges such as rising imports, global market volatility and sustainability requirements remain, the industry’s fundamentals continue to be supported by strong domestic demand and policy backing.
As India advances toward its goal of becoming a major manufacturing and infrastructure powerhouse, the steel sector is expected to play an increasingly important role in driving industrial growth, employment generation and economic development.
The Q1 FY2026 numbers suggest that the industry is well positioned to support these ambitions while continuing its transition towards greater efficiency, technological sophistication and environmental sustainability.
