India's steel consumption rises 8.3% in Q1 on strong domestic demand
New Delhi, July 6
India's steel sector posted broad-based growth in the first quarter of FY2026-27, with finished steel consumption rising at a faster pace than production, while the country remained a net importer of finished steel, according to data released by the Ministry of Steel on Monday.
The ministry's latest provisional data showed finished steel consumption grew 8.3 per cent year-on-year to 41.6 million tonnes during April-June 2026, outpacing finished steel production, which increased 5.9 per cent to 41.0 million tonnes, indicating continued strength in domestic demand.
On a monthly basis, finished steel consumption rose 7.2 per cent year-on-year to 14.2 million tonnes in June, while finished steel production increased 6 per cent to 13.8 million tonnes.
The Ministry of Steel said the country's steel sector "recorded growth in Q1 FY2026" across key production and consumption indicators.
Crude steel production also remained on a growth path. According to the ministry, crude steel output rose 3 per cent year-on-year to 42.1 million tonnes during April-June, while June production increased 3.9 per cent to 14.1 million tonnes.
The data also highlighted India's continued dependence on imports to meet domestic demand. The ministry said, "India was net importer of finished steel in terms of quantity for the period of Apr-Jun 2026."
Finished steel imports rose sharply during the quarter. Imports increased 49.2 per cent year-on-year to 2.06 million tonnes during April-June, while exports rose 31.4 per cent to 1.59 million tonnes over the same period.
The release also showed that domestic steel prices softened during June compared with 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 moved higher in June. NMDC Baila lump ore prices increased 3.6 per cent month-on-month to Rs 5,700 per tonne, while Baila fines rose 3.2 per cent to Rs 4,850 per tonne. In contrast, manganese ore prices fell 5 per cent and scrap prices declined 4.4 per cent.
Highlighting industry developments, the ministry said the country's steelmaking capacity remained 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, the grant of Miniratna Category-I status to MECON, the anti-dumping investigation into hot-rolled flat steel imports from China, Japan and Russia, and the commencement of construction of JSW Group's proposed 2 MTPA integrated steel plant in Kadapa, Andhra Pradesh.
On green steel initiatives, the ministry said SAIL Rourkela Steel Plant launched a CO₂ Dashboard, describing it as "a first-of-its-kind digital platform with 100% ERP-SAP based data integration to strengthen its decarbonsation efforts."
— ANI
Reader Comments
The CO2 dashboard by SAIL Rourkela is a smart move for green steel. But why are iron ore prices still rising even as steel prices soften? NMDC needs to justify that hike—Rs 5,700 per tonne for lump ore is steep for domestic producers.
Finally some positive news for infra! Steel consumption rising means more bridges, highways, and housing. But 300 MTP target by 2030 seems ambitious when capacity is still at 221.9 MTPA. Need faster clearances and better logistics. Also, glad to see JSW's new plant in AP coming up—jobs and growth for the region! 💪
Net importer again—that's a bit embarrassing for a country with so much iron ore. We should be exporting, not importing! The anti-dumping duty on Chinese HR coils might help, but we also need to modernize our steel plants. Private sector like JSW and Tata are doing well, but PSUs like SAIL need to step up.
Interesting data—strong domestic demand is a clear sign of economic momentum. The price softening in TMT bars (down 4.7%) should help infra projects. But the 49% import surge raises questions about quality and cost competitiveness. Hope the government balances protectionism with efficiency.
Love the digital transformation push and the CO2 dashboard—green steel is the future! But why is NMDC increasing iron ore prices when steel prices are falling? That's squeezing margins for small producers. Also, manganese ore prices falling 5% is a relief. 😌