India's Steel Sector Performance Update: April-August 2026
The Ministry of Steel reported continued positive growth trends in India's steel sector for the period April-August 2026. Overall production showed steady growth with crude steel production reaching 70.3 million tonnes (Mt), representing a 1.8% increase over the corresponding period last year (CPLY). Finished steel production grew more significantly at 3.8% YoY to 68.1 Mt, while hot metal production increased by 1.9% to 40.0 Mt.
Production and Capacity Analysis
The total annual crude steel capacity stood at 222.8 Mt, with the top 7 producers (SAIL, RINL, NSL, TSL Group, AM/NS, JSL/JSPL, and JSW Group) accounting for 117.4 Mt of capacity and producing 39.2 Mt of crude steel during the period. The remaining producers, with 105.4 Mt capacity, contributed 31.1 Mt of production. The public sector share represented 13.9% of total capacity but produced 15.8 Mt of crude steel, accounting for 22.5% of total production.
Price Movements and Market Trends
Steel prices showed mixed trends in August 2026. TMT (10 mm) prices increased to ₹58,002/tonne, up 2.3% month-on-month and 5.8% year-on-year. HR Coil (2 mm) prices reached ₹70,448/tonne, up 0.9% MoM and 15.5% YoY. CR Coil (0.63 mm) prices declined slightly by 0.2% MoM to ₹76,462/tonne but remained up 13.3% YoY. GP Sheet (0.63 mm) prices increased to ₹86,668/tonne, up 0.3% MoM and 17.7% YoY. All prices are inclusive of GST and based on average prices from four metro cities.
Demand and Consumption Patterns
Finished steel consumption showed strong growth, reaching 70.3 Mt during April-August 2026, representing a 7.0% increase over CPLY. Monthly consumption in August 2026 stood at 14.3 Mt, up 3.9% compared to August 2025.
Trade Dynamics
India maintained a net importer position in finished steel during the period. Imports surged to 3.49 Mt (3487.3 thousand tonnes), representing a 29.5% increase over CPLY, with import value reaching ₹36,193.9 crore (38.3% growth). Exports also grew significantly to 2.99 Mt (2986.0 thousand tonnes), up 34.1% YoY, with export value at ₹23,646.6 crore (32.0% growth). In August alone, imports were 721.1 thousand tonnes (8.0% YoY growth) while exports were 693.7 thousand tonnes (31.3% YoY growth).
Raw Material Price Trends
Domestic raw material prices generally declined in August 2026. NMDC Iron Ore Baila Lump (65.5%, 10-40 mm) decreased to ₹5,250/tonne, down 3.7% MoM. Iron Ore Baila Fines (64%, 0-10 mm) fell to ₹4,500/tonne, down 4.3% MoM. MOIL Manganese Ore Lump (Mn 37%, Fe 7.5%) declined to ₹17,603/tonne, down 5.0% MoM. Scrap—HMS II increased to ₹39,970/tonne, up 3.6% MoM.
Key Indices Performance
The Nifty Metal Index averaged 13,181.8 in August 2026, showing strong 5.0% MoM growth and 41.7% YoY increase. The Manufacturing PMI Index stood at 52.8 in August, declining 1.3% MoM and 11.0% YoY but remaining in expansion territory. The Baltic Dry Index averaged 2,951.1, up 6.5% MoM and 47.5% YoY, indicating strong global shipping demand.
Policy and Industry Initiatives
Union Steel Minister H.D. Kumaraswamy reviewed SAIL's performance, emphasizing capacity expansion and modernization to support India's steel sector development. SAIL received 'Top Employer' certification valid until December 2027, following its third consecutive Great Place To Work certification. NMDC recorded iron ore production of 4.07 Mt in August 2026 (20.8% YoY growth) and sales of 3.58 Mt (5.6% YoY growth), with April-August production reaching 23.23 Mt. NMDC also advanced its 2 Mtpa Nagarnar Pellet Plant commissioning.
International Cooperation
SRTMI and Sweden's SWERIM signed an MoU for iron and steel research collaboration focusing on green steel, decarbonization, circular economy, and digital technologies. Global Affairs Canada Deputy Minister Glenn Purves met Steel Secretary Sandeep Poundrik to discuss enhancing bilateral cooperation in trade, technology, and investment across the steel value chain.
Green Steel Initiatives
SAIL's Bhilai Steel Plant launched a CO₂ Dashboard for monitoring carbon emissions at Bhilai Steel Plant and Chandrapur Ferro Alloy Plant, supporting decarbonization efforts and operational efficiency through data-driven decision making.