India's Steel Sector Q1 FY 2026-27 Performance Overview

India's steel sector demonstrated growth across key production metrics during the first quarter of fiscal year 2026-27 (April-June). Crude steel production reached 42.1 million tonnes, representing a 3.0% year-on-year increase from 40.8 million tonnes in the corresponding period last year. Monthly production for June 2026 stood at 14.1 million tonnes, up 3.9% from June 2025. Finished steel production showed stronger growth at 41.0 million tonnes for the quarter, a 5.9% increase year-on-year, while hot metal production remained relatively stable at 23.5 million tonnes, up only 1.4%.

Production Capacity and Market Structure

The total steelmaking capacity in India remained steady at 221.9 million tonnes per annum, supporting progress toward the National Steel Policy target of 300 Mtpa by 2030. Producer-wise data reveals that the top 7 producers (including SAIL, RINL, NSL, TSL Group, AM/NS, JSL/JSPL, and JSW Group) with combined capacity of 117.4 Mtpa produced 23.2 million tonnes of crude steel, 21.8 million tonnes of finished steel, and 21.8 million tonnes of hot metal during the quarter. The remaining producers, with 104.5 Mtpa capacity, contributed 18.9 million tonnes of crude steel and 19.2 million tonnes of finished steel. The public sector accounted for 13.9% of total capacity but produced 15.7 million tonnes of crude steel, representing 37.3% of total production.

Price Trends and Market Dynamics

Steel prices exhibited mixed trends across product categories. TMT (10 mm) prices declined to ₹60,068 per tonne in June 2026, down 4.7% month-on-month but up 4.4% year-on-year. HR Coil (2 mm) prices were relatively stable at ₹70,108 per tonne, down 0.5% monthly but up 11.2% annually. CR Coil (0.63 mm) stood at ₹77,053 per tonne (-1.1% MoM, +11.4% YoY), while GP Sheet (0.63 mm) reached ₹86,505 per tonne (-2.8% MoM, +15.8% YoY). All prices are inclusive of GST and based on average prices from four metro cities—Kolkata, Delhi, Mumbai, and Chennai.

Demand and Consumption Patterns

Finished steel consumption showed robust growth, reaching 41.6 million tonnes in Q1 FY27, an 8.3% increase from 38.4 million tonnes in the same period last year. Monthly consumption in June 2026 was 14.2 million tonnes, up 7.2% year-on-year, indicating sustained domestic demand momentum.

Trade Dynamics and Import-Export Trends

India transitioned to a net importer of finished steel during April-June 2026. Imports surged to 2.06 million tonnes (quantity terms), representing a 49.2% year-on-year increase, valued at ₹20,214.5 crore (44.2% increase). Exports also grew but at a slower pace, reaching 1.59 million tonnes (31.4% increase) valued at ₹12,475.2 crore (27.6% increase). The significant import growth particularly in June 2026, where imports reached 695.7 thousand tonnes (57.9% YoY increase), contributed to the net import position.

Raw Material Market Conditions

Domestic raw material prices showed upward movement for iron ore products. NMDC Iron Ore Baila Lump (65.5%, 10-40 mm) increased to ₹5,700 per tonne in June 2026, up 3.6% month-on-month, while NMDC Iron Ore Baila Fines (64%, -10 mm) reached ₹4,850 per tonne, up 3.2%. Manganese ore prices declined with MOIL Manganese Ore Lump (Mn 37%, Fe 7.5%) falling to ₹19,505 per tonne, down 5.0% monthly. Scrap—HMS II prices also decreased to ₹40,665 per tonne, down 4.4% from May 2026.

Key Economic Indices Performance

The Nifty Metal Index averaged 12,971.9 in June 2026, declining 1.9% month-on-month but showing strong 39.3% year-on-year growth. The PMI Manufacturing Index stood at 54.2 in June, down 1.5% monthly and 7.2% annually, yet remaining in expansion territory above 50. The Baltic Dry Index averaged 2,779.9 in June, down 8.8% from May but up 64.9% year-on-year, indicating robust global shipping demand.

Policy and Industry Initiatives

The Ministry of Steel emphasized digital transformation through its Chintan Shivir held on 24th June 2026 on Digitalisation in the Steel Sector, promoting adoption of artificial intelligence, automation, digital mining, predictive maintenance and smart manufacturing technologies. MECON Limited was granted Miniratna Category-I status, recognizing its consistent financial performance and operational excellence, which provides greater financial and operational autonomy. The DGTR, Ministry of Commerce and Industry initiated an anti-dumping investigation into hot-rolled flat steel imports from China, Japan, and Russia following complaints of unfair pricing to protect domestic manufacturers.

Corporate Developments and Capacity Expansion

SAIL supplied 5,700 tonnes of special steel for three recently commissioned Indian Navy vessels: INS Dunagiri, INS Agray, and INS Sanshodhak. NMDC reported strong operational performance with iron ore production of 5.15 million tonnes in June 2026, up 44% year-on-year, while sales increased 11% to 3.98 million tonnes. Q1 cumulative production reached 15.10 million tonnes. JSW Group commenced construction of its proposed 2 MTPA integrated steel plant in Kadapa, Andhra Pradesh.

Green Steel and Sustainability Initiatives

SAIL Rourkela Steel Plant launched a CO₂ Dashboard, a first-of-its-kind digital platform with 100% ERP-SAP based data integration to strengthen decarbonisation efforts. Barsua-Taldih Iron Mines of SAIL celebrated Van Mahotsav 2026 with a plantation drive, emphasizing environmental sustainability.