India's Steel Production and Consumption Trends (Apr-Aug 2026)
India's steel sector demonstrated robust demand with finished steel consumption reaching 70.5 million tonnes (MT) during April-August 2026, representing a 7.4% increase compared to the corresponding period last year (CPLY). August 2026 alone saw consumption of 14.6 MT, up 5.8% year-on-year (YoY).
Production Performance
Crude steel production reached 71.0 MT during Apr-Aug 2026, showing a 2.8% growth YoY, with August 2026 production at 14.8 MT (up 4.6% YoY). Finished steel production stood at 68.3 MT for the five-month period, increasing by 4.1% YoY. The production breakdown shows the Top 7 producers (including SAIL, RINL, NSL, TSL Group, AM/NS, JSL(JSPL), and JSW Group) contributed 39.8 MT of crude steel from their total capacity of 117.4 MT, while remaining producers accounted for 31.2 MT from 105.4 MT capacity. Public sector share in crude steel production was 15.7%.
Price Movements
Steel prices showed significant increases in September 2026 across all major product categories. TMT (10 mm) prices rose to ₹65,298/tonne (up 12.6% month-on-month and 21.0% YoY), HR Coil (2 mm) reached ₹76,085/tonne (up 8.0% MoM and 26.8% YoY), CR Coil (0.63 mm) increased to ₹84,972/tonne (up 11.1% MoM and 28.8% YoY), and GP Sheet (0.63 mm) climbed to ₹94,148/tonne (up 8.6% MoM and 27.7% YoY). All prices are inclusive of GST and based on average prices from four metro cities.
Special Steel Segments
Alloy steel production surged 30.9% to 4.80 million tonnes during Apr-Aug 2026, with August production up 47.1% to 1.09 million tonnes. Consumption grew 24.5% to 5.12 million tonnes. Stainless steel production, however, declined 11.7% to 1.62 million tonnes during the period, with August production down 41.5% to 230,300 tonnes. Stainless steel imports more than doubled (100.7% increase) to 642,900 tonnes while exports decreased 24.4% to 213,700 tonnes.
Trade Dynamics
India remained a net importer of finished steel in quantity terms during Apr-Aug 2026, with imports totaling 3.49 million tonnes (up 29.5% YoY) valued at ₹36,193.9 crore (up 38.3% YoY). Exports reached 2.99 million tonnes (up 34.1% YoY) valued at ₹23,646.6 crore (up 32.0% YoY). China was the largest import source with 1.11 million tonnes (31.8% share), followed by Korea (1.04 million tonnes, 29.8% share) and Japan (496,600 tonnes, 14.2% share). Vietnam was the top export destination with 416,000 tonnes (13.9% share), followed by UAE (389,200 tonnes, 13.0% share) and Italy (289,000 tonnes, 9.7% share).
Raw Material Prices
Domestic raw material prices showed mixed trends in September 2026. NMDC Iron Ore Baila Lump (65.5%, 10-40 mm) increased 2.9% to ₹5,400/tonne, while NMDC Iron Ore Baila Fines (64%, 0-10 mm) remained stable at ₹4,500/tonne. MOIL Manganese Ore Lump (Mn 37%, Fe 7.5%) was unchanged at ₹17,603/tonne. Scrap — HMS II saw a significant increase of 9.6% to ₹43,810/tonne.
Key Indices and Initiatives
The Nifty Metal Index averaged 13,181.8 in August 2026, up 5.0% MoM and 41.7% YoY. The PMI Manufacturing Index stood at 52.8 in August, while the Baltic Dry Index averaged 2,951.1, up 6.5% MoM and 47.5% YoY. Several green initiatives were reported, including 99 steel producers receiving Green Steel Certificates under the Ministry of Steel's Green Steel Initiative, with most products receiving 5-star ratings. SAIL recorded strong performance with August sales up 13% YoY to 1.87 MT and supplies to Indian Railways reaching a record 123,000 tonnes. NMDC achieved milestones including successful iron ore slurry pumping through its 135-km pipeline and production of a 27.29-carat gem-quality diamond.
International Cooperation
The Ministry of Steel showcased opportunities for India-Russia cooperation across the steel value chain at INNOPROM India 2026, with participation from SAIL, NMDC, MOIL and MECON. Discussions with Norway focused on cooperation in CCUS, green steel, and low-carbon steel production technologies.