India's finished steel consumption soared to an impressive 99.3 million tonnes during April-October 2026, marking a robust 7.5% year-on-year growth and underscoring the nation's accelerating industrial expansion. This surge highlights the steel sector's pivotal role in India's economic trajectory, even as the country became a net importer of finished steel in terms of quantity during the period. Strategic policy interventions and significant investments by public sector enterprises are further bolstering the sector's long-term trajectory and green transition.
India’s finished steel consumption soared to an impressive 99.3 million tonnes during April-October 2026, marking a robust 7.5% year-on-year growth and underscoring the nation’s accelerating industrial expansion and infrastructure development. This significant surge, detailed in recent data released by the Press Information Bureau, highlights the steel sector’s pivotal role in India’s economic trajectory, even as the country navigates a complex global trade environment, becoming a net importer of finished steel in terms of quantity during this period.
Robust Growth in Production and Demand
The seven-month period witnessed substantial gains across key production metrics. Crude steel production reached 99.1 Mt, a 2.6% increase over the corresponding period last year, while finished steel production grew by 3.9% to 95.5 Mt. Hot metal production also saw a 1.9% rise, reaching 56.3 Mt. Large producers, including major public and private sector players, accounted for a significant share of this output, demonstrating sustained operational efficiency and capacity utilization.
Demand for finished steel remained exceptionally strong, with October 2026 alone registering 14.3 Mt in consumption, a 6.6% increase from October 2025. This consistent demand reflects vibrant activity in sectors like construction, automotive, and manufacturing, which are primary consumers of steel.
Market Dynamics and Price Trends
Steel product prices experienced notable appreciation, impacting project costs and industry profitability. For April-October 2026, key products like TMT (10 mm) saw a 26% year-on-year price increase, HR Coil (2 mm) rose by 31.6%, CR Coil (0.63 mm) by 33.3%, and GP Sheet (0.63 mm) by 33.6%. These increases are influenced by both domestic demand and global market conditions, alongside movements in raw material costs, though domestic iron ore and manganese ore prices remained relatively stable or saw modest increases in October 2026.
Shifting Trade Landscape
India’s position as a net importer of finished steel in terms of quantity for April-October 2026 reflects the intensity of domestic demand outpacing immediate production capacities. Imports surged by 28.9% in volume to 4.90 Mt and by a significant 49% in value to ₹52,493.7 crore. While exports also grew by 15.5% in volume to 3.98 Mt and by 21% in value to ₹32,177.2 crore, the import growth rate was considerably higher, creating a trade deficit in quantity.
Strategic Initiatives Drive Sector Resilience
Government Policy Interventions
The Ministry of Steel has proactively addressed industry concerns through targeted policy measures. Notably, it granted a Quality Control Order (QCO) compliance exemption for 162 grades of semi-finished stainless steel products until March 31, 2027. This move aims to:
- Alleviate concerns of Micro, Small, and Medium Enterprises (MSMEs).
- Ensure the ready availability of intermediate materials crucial for stainless steel manufacturing.
“The measure aims to address MSME concerns and facilitate the availability of intermediate materials for stainless steel manufacturing.”
Public Sector Enterprises Lead Investment
Major public sector undertakings are demonstrating strong performance and strategic investment:
- SAIL: Reported robust financial performance for H1 FY27, with Profit After Tax (PAT) surging by approximately 315% to ₹1,774 crore and sales volume growing by 5% to 5.16 Mt in Q2 FY27. The company approved a ₹1,714-crore expansion and modernisation plan for its Alloy Steels Plant, Durgapur, targeting high-grade alloy and special steels for defence, railway, and automotive sectors.
- NMDC: Achieved 5.04 Mt iron ore production in October 2026, an 18% year-on-year increase, with cumulative production reaching 32.32 Mt (22% YoY growth) during April–October FY27.
- MOIL: Registered improved financial performance in H1 FY27, with manganese ore sales volume rising by 9.67% and PAT increasing by 22.5% to ₹149.39 crore.
Towards a Sustainable Future: Green Steel & Global Partnerships
Green Steel Adoption Accelerates
India’s commitment to sustainable steelmaking is evident through the Ministry of Steel’s Green Steel Initiative. By October 2026, 108 distinct steel producers had received Green Steel Certificates for various products, including TMT bars, HR/CR coils, and plates. A significant majority of these certified products achieved 5-star ratings, reflecting the growing adoption of lower-emission steelmaking practices across the industry.
Strengthening International Cooperation
India is actively forging global partnerships to secure raw materials and foster technological exchange. A Ministry of Steel delegation, led by the Secretary (Steel), engaged with Australian and New Zealand officials:
- Australia: Discussions at IMARC 2026 and the Australia-India Business Meet focused on cooperation in mining, steel, critical minerals, raw material security, investment, and technology. NMDC Limited further solidified ties by opening a Sydney office to enhance engagement with Australian partners in the minerals sector.
- New Zealand: Meetings with Invest New Zealand and the Ministry of Foreign Affairs and Trade (MFAT) explored strengthening cooperation in investment, trade, and the steel sector, identifying new avenues for collaboration.
Reporting and source materials courtesy of Press Information Bureau.