Steel consumption was faster than production in the first quarter of financial year 2026-27. Amid strong domestic demand, finished steel consumption rose 8.3%, while production rose 5.9%. During this period, India remained a net importer of finished steel.
New Delhi [भारत]July 6 (ANI): India’s steel sector has registered massive growth in the first quarter of FY 2026-27. During this period, consumption of finished steel grew at a faster rate than production, while the country remained a net importer of finished steel. This information has come to light from the data released by the Steel Ministry on Monday.
The ministry’s latest provisional data shows finished steel consumption rose 8.3 per cent year-on-year to 41.6 million tonnes during April-June 2026, outpacing finished steel production. Finished steel production rose 5.9 percent to 41.0 million tonnes, indicating continued strength in domestic demand. On a monthly basis, finished steel consumption in June rose 7.2 per cent year-on-year to 14.2 million tonnes, while finished steel production rose 6 per cent to 13.8 million tonnes.
increase in consumption and production
The steel ministry said the country’s steel sector recorded growth in key production and consumption indicators “in the first quarter of FY26”. Crude steel production also remained on the growth path. According to the ministry, crude steel production during April-June rose 3 per cent year-on-year to 42.1 million tonnes, while June output rose 3.9 per cent to 14.1 million tonnes.
import-export situation
The data also highlighted India’s continued dependence on imports to meet domestic demand. “India was a net importer of finished steel for the period April-June 2026 in terms of volume,” the ministry said. Imports of finished steel increased rapidly during the quarter. Imports during April-June rose 49.2 per cent year-on-year to 2.06 million tonnes, while exports rose 31.4 per cent to 1.59 million tonnes in the same period.
Domestic prices and raw materials
The release also showed that domestic steel prices softened during June compared to May. TMT (10 mm) prices fell 4.7 per cent month-on-month to Rs 60,068 per tonne, while HR coil prices declined 0.5 per cent, CR coil prices fell 1.1 per cent, and GP sheet prices were down 2.8 per cent.
Among raw materials, NMDC’s iron ore prices rose in June. NMDC baila lump ore prices rose 3.6 per cent month-on-month to Rs 5,700 a tonne, while baila fines rose 3.2 per cent to Rs 4,850 a tonne. In contrast, manganese ore prices fell by 5 per cent and scrap prices by 4.4 per cent.
Other industry related developments
Highlighting the growth of the industry, the ministry said the country’s steel manufacturing capacity remains at 221.9 million tonnes per annum, supporting progress towards the National Steel Policy target of 300 million tonnes by 2030. The ministry also noted several policy and industry initiatives during the month, including a digital transformation drive for the steel sector, grant of Miniratna Category-I status to MECON, anti-dumping investigation on hot-rolled flat steel imports from China, Japan and Russia, and commencement of construction of JSW Group’s proposed 2 MTPA integrated steel plant at Cuddapah, Andhra Pradesh.
Green Steel Initiative
On green steel initiatives, the ministry said SAIL Rourkela Steel Plant launched a CO₂ dashboard, described as a “first of its kind digital platform with 100% ERP-SAP based data integration to strengthen decarbonization efforts”. (ANI)
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