India’s Steel Production Rises 2.4% to 56.2 Million Tonnes in Apr-Jul 2026, Consumption Jumps 7.9%

India’s steel sector recorded steady growth in April-July 2026, supported by stronger domestic consumption, higher production, rising trade activity and continued government initiatives focused on technology and sustainability.

India’s Steel Sector Maintains Strong Growth Momentum in Apr-Jul 2026

India’s steel industry continued its positive growth trajectory during the first four months of the financial year, with production and domestic consumption registering healthy year-on-year increases.

Crude steel production reached 56.2 million tonnes (Mt) between April and July 2026, marking a 2.4% increase compared with the same period a year earlier. Finished steel production also rose, while consumption recorded a stronger growth rate, indicating sustained demand from India's infrastructure, construction and manufacturing sectors.

Crude Steel Production Increases 2.4%

India produced 56.2 Mt of crude steel during April-July 2026, up 2.4% year-on-year. Finished steel production grew at a faster pace, increasing 4.7% to 54.7 Mt during the period.

The growth highlights continued expansion in domestic steelmaking capacity and demand. Finished steel consumption stood at 56.0 Mt, registering a significant 7.9% rise over the corresponding period of the previous year.

The stronger consumption growth indicates that India's expanding infrastructure and industrial activity continues to support steel demand.

July Steel Production Also Records Growth

The positive trend continued in July 2026. India's crude steel production reached 14.4 Mt, representing a 1.9% year-on-year increase.

Finished steel production rose by 3.9% to 14.0 Mt during the month. The figures indicate that steel manufacturers continued to maintain production levels despite changes in global market conditions and raw material costs.

Steel Prices Remain Firm

Steel prices remained relatively firm during August 2026, reflecting continued demand in the domestic market. TMT bar prices increased 2.3% month-on-month to ₹58,003 per tonne, while hot-rolled coil (HR Coil) prices rose 0.9% to ₹70,448 per tonne.

Firm pricing could support steel producers' revenues while also reflecting sustained demand from construction and manufacturing activities.

Alloy Steel Segment Shows Strong Expansion

The alloy steel segment recorded particularly strong growth during April-July 2026.

Alloy steel production increased 26.7% to 3.71 Mt, while consumption grew 22.1% to 4.02 Mt. The sharp rise points to increasing demand for specialised steel products used across automobiles, engineering, infrastructure and other industrial applications.

The growth of higher-value steel categories could also help India strengthen its position in advanced manufacturing and reduce dependence on specialised imports.

Stainless Steel Consumption Rises Despite Production Decline

The stainless steel segment presented a mixed picture. Stainless steel production declined 4.2% to 1.38 Mt during April-July 2026. However, consumption increased substantially by 25% to 1.77 Mt.

The gap between production and consumption suggests stronger domestic demand for stainless steel and could create additional opportunities for manufacturers to expand capacity.

Steel Trade Records Strong Growth

India's finished steel trade also remained active during the April-July period.

Finished steel imports increased 36.6% to 2.77 Mt, while exports rose 35% to 2.29 Mt. Despite strong export growth, India remained a net importer of finished steel in volume terms.

In monetary terms, finished steel imports climbed 43.1% to ₹28,330.8 crore, equivalent to about US$2.96 billion. Exports increased 29.4% to ₹18,105.4 crore, or approximately US$1.89 billion.

China and Korea Lead Steel Imports

China and South Korea remained India's largest sources of finished steel imports. China accounted for approximately 30.9% of India's import volume, while Korea contributed 30.2%. Their combined share represents a significant portion of India's imported finished steel.

On the export side, Vietnam and the UAE emerged as important destinations for Indian steel products, reflecting the country's growing participation in regional steel markets.

Government Pushes Digitalisation and Green Steel

Alongside production and trade growth, India's steel industry is undergoing several policy and technology-related initiatives.

The Ministry of Steel's monthly digitalisation webinar series is encouraging greater adoption of technology across the sector. Digital tools can help companies improve operational efficiency, monitor production and strengthen decision-making.

The notification of the Mines and Minerals (Development and Regulation) Amendment Act, 2026 is another significant policy development. The changes are expected to support India's long-term raw material security and mining ecosystem.

NMDC Expands Iron Ore Processing Capacity

NMDC's 2.0 MTPA Bacheli iron ore beneficiation plant has entered trial operations. Beneficiation can improve the quality and utilisation of iron ore resources, supporting a more efficient domestic steel value chain.

Improving access to quality raw materials is important for India's plans to expand steelmaking capacity while maintaining competitiveness.

Green Steel Gains Momentum

Sustainability is also becoming an increasingly important part of India's steel strategy. The government has issued Green Steel Certificates to 98 producers across 15 states, supporting the development of lower-emission steel production.

The initiative reflects India's broader push to reduce the environmental impact of the steel industry while encouraging producers to adopt cleaner technologies and improve energy efficiency.

Outlook for India’s Steel Industry

India's steel sector entered the second half of 2026 with positive momentum. Rising domestic consumption, higher production of finished steel and strong growth in alloy steel indicate healthy underlying demand.

At the same time, rising imports underline the need to strengthen domestic capacity for specialised products. Government initiatives covering raw materials, digitalisation and green steel could play an important role in improving the industry's long-term competitiveness.

With infrastructure development, manufacturing expansion and sustainability increasingly shaping demand, India's steel industry is expected to remain an important contributor to the country's economic growth.