India's Steel Sector Performance H1 FY 2026–27

India's steel sector demonstrated steady growth during the first half of fiscal year 2026–27, with crude steel production reaching 85.1 million tonnes (Mt) from April to September 2026, representing a 2.9% increase over the corresponding period last year (CPLY). Monthly production in September 2026 stood at 14.1 Mt of crude steel, showing a 3.4% year-on-year growth. Finished steel production reached 81.8 Mt in H1 FY27, up 3.7% YoY, while hot metal production increased by 2.5% to 48.3 Mt during the same period.

Production Capacity and Distribution

The total annual crude steel capacity across India stood at 222.9 Mt, with the top seven producers (SAIL, RINL, NSL, TSL Group, AM/NS, JSL/JSPL, and JSW Group) accounting for 117.4 Mt of capacity. These top producers contributed 47.7 Mt of crude steel production, 44.8 Mt of hot metal production, and 44.1 Mt of finished steel production during H1 FY27. The remaining producers, with 105.4 Mt capacity, produced 37.4 Mt of crude steel and 37.7 Mt of finished steel. The public sector share accounted for 13.9% of total capacity but contributed 15.5% of crude steel production, 29.4% of hot metal production, and 13.5% of finished steel production.

Steel Price Trends

Steel prices showed significant increases in September 2026 across all major product categories. TMT bars (10 mm) reached ₹65,298 per tonne, up 12.6% month-on-month and 21.0% year-on-year. HR Coil (2 mm) prices rose to ₹76,085 per tonne, increasing 8.0% MoM and 26.8% YoY. CR Coil (0.63 mm) reached ₹84,972 per tonne, up 11.1% MoM and 28.8% YoY, while GP Sheet (0.63 mm) prices increased to ₹94,148 per tonne, rising 8.6% MoM and 27.7% YoY. These prices are inclusive of GST and based on average prices from four metro cities—Kolkata, Delhi, Mumbai, and Chennai.

Demand and Consumption

Finished steel consumption showed robust growth, reaching 84.9 Mt during April-September 2026, representing a 7.5% increase over CPLY. Monthly consumption in September 2026 stood at 14.4 Mt, showing an 8.0% YoY growth, indicating sustained demand momentum in the sector.

Trade Dynamics

India maintained its position as a net importer of finished steel in quantity terms during April-September 2026. Imports totaled 4.14 million tonnes (4141.8 thousand tonnes), representing a 23.8% increase over the same period last year, with a value of ₹43,690.1 crore, up 40.0% YoY. Exports reached 3.55 million tonnes (3547.8 thousand tonnes), increasing 26.2% YoY, with an export value of ₹28,263.7 crore, up 28.9% YoY. In September 2026 alone, imports were 654.4 thousand tonnes (valued at ₹7,496.2 crore) while exports were 561.8 thousand tonnes (valued at ₹4,617.1 crore).

Raw Material Prices

Domestic raw material prices showed mixed trends in September 2026. NMDC Iron Ore Baila Lump (65.5%, 10-40 mm) increased to ₹5,400 per tonne, up 2.9% month-on-month, while NMDC Iron Ore Baila Fines (64%, 0-10 mm) remained stable at ₹4,500 per tonne. MOIL Manganese Ore Lump (Mn 37%, Fe 7.5%) also remained stable at ₹17,603 per tonne. Scrap—HMS II showed a significant increase to ₹43,810 per tonne, up 9.6% MoM.

Key Indices Performance

The Nifty Metal Index averaged 13,053.7 in September 2026, showing a 32.7% year-on-year increase despite a 1.0% month-on-month decline. The Manufacturing PMI Index reached 55.1 in September 2026, up 4.4% MoM but down 4.5% YoY, indicating continued expansion in manufacturing activity. The Baltic Dry Index averaged 3,407.7 in September 2026, showing strong growth of 15.5% MoM and 60.4% YoY, reflecting robust global shipping demand.

Policy and Industry Initiatives

The Ministry of Steel established a Steel Industry Safety Council (SISC), chaired by the Secretary of the Ministry of Steel, to strengthen safety standards and accident prevention across the industry. A dedicated Steel Industry Safety Directorate (SISD) will support the Council through safety audits, incident investigations, and issuance of safety standards tailored to Indian conditions, covering iron and steel producers and CPSE mines.

NMDC commissioned its 2 MTPA pellet plant at Nagarnar, Chhattisgarh, completing its ₹5,427-crore integrated project that includes an iron ore processing plant at Bacheli and a 135-km, 15 MTPA slurry pipeline. The plant uses Straight Grate Induration technology and will enable value addition from Bailadila iron ore fines. NMDC's iron ore production rose 8% YoY to 4.04 Mt in September 2026, with H1 FY27 output reaching 27.3 Mt, up nearly 23% over H1 FY26.

SAIL and Bharat Coking Coal Limited (BCCL) signed an MoU for joint development and operation of SAIL's Indikatta Ramnagore Coal Block and BCCL's East of Damagoria (Kalyaneshwari) Coal Block in West Bengal. SAIL's Rourkela Steel Plant commissioned an AI-based safety surveillance system at Hot Strip Mill-2 using 10 IP cameras and computer vision to detect safety violations.

Green Steel Initiatives

Under the Ministry of Steel's Green Steel Initiative, 101 distinct steel producers have been issued Green Steel Certificates as of September 2026, covering products including TMT bars, HR/CR coils, plates, wire rods, pipes, and other steel products, with most certified products receiving 5-star ratings. Jadavpur University, in collaboration with SAIL, DVC, and HURL, is establishing a ₹8.18-crore Centre of Excellence for green hydrogen research, one of four approved by the Ministry of New and Renewable Energy, supporting green hydrogen use in steel production under the National Green Hydrogen Mission.