India's steel consumption rises 8.3% on strong domestic demand

India's steel sector demonstrated robust growth in the first quarter of the 2026-27 fiscal year, with finished steel consumption climbing 8.3% year-on-year to 41.6 million tonnes. This surge in demand outpaced the 5.9% increase in finished steel production, which reached 41.0 million tonnes, underscoring the sector's strong domestic footing. Monthly data for June also showed a healthy rise in consumption (7.2%) and production (6%).

Despite the production growth, India remained a net importer of finished steel during the April-June period. Imports surged by 49.2% year-on-year to 2.06 million tonnes, while exports saw a 31.4% increase to 1.59 million tonnes. Crude steel output also followed a growth trajectory, rising 3% year-on-year to 42.1 million tonnes in the quarter.

Domestically, steel prices experienced a softening trend in June compared to May, with TMT (10 mm) prices falling 4.7% month-on-month. However, prices for key raw materials like NMDC's iron ore saw increases. The Ministry of Steel highlighted ongoing industry developments, including a digital transformation drive, the granting of Miniratna status to MECON, an anti-dumping investigation into imports from China, Japan, and Russia, and the commencement of construction for a new integrated steel plant by JSW Group. The country's steelmaking capacity stands at 221.9 million tonnes per annum, supporting the National Steel Policy's target of 300 million tonnes by 2030.