New Delhi: India’s steel sector maintained a positive growth trajectory during the first half of the financial year 2026-27, supported by higher production, strong domestic demand and several industry-level initiatives. According to data released by the Ministry of Steel on October 6, 2026, crude steel production increased by 2.9% year-on-year to 85.1 million tonnes (Mt) during April–September 2026.
Finished steel production rose 3.7% to 81.8 Mt, while finished steel consumption grew 7.5% to 84.9 Mt. However, India remained a net importer of finished steel in volume terms during the period.
The sector also witnessed a sharp rise in steel prices in September, alongside developments in industrial safety, raw material management, domestic coking coal supplies and low-emission steel production.
India’s Steel Production Rises in H1 FY 2026-27
India recorded growth across major steel production categories during April–September 2026 compared with the corresponding period of the previous financial year.
Key Steel Production Figures
- Crude steel production: Increased to 85.1 Mt from 82.7 Mt, registering growth of 2.9%.
- Hot metal production: Rose to 48.3 Mt from 47.2 Mt, an increase of 2.5%.
- Finished steel production: Grew to 81.8 Mt from 78.8 Mt, marking an increase of 3.7%.
In September 2026, crude steel production reached 14.1 Mt, compared with 13.7 Mt in September 2025, reflecting year-on-year growth of 3.4%.
Hot metal production stood at 7.9 Mt, up 0.2% from the same month last year. Finished steel production increased to 13.5 Mt from 13.2 Mt, registering growth of 1.9%.
Production by Major Steel Producers
During April–September 2026, the top seven steel producer groups recorded crude steel production of 47.7 Mt, hot metal production of 44.8 Mt and finished steel production of 44.1 Mt.
The remaining producers collectively recorded crude steel production of 37.4 Mt, hot metal production of 3.5 Mt and finished steel production of 37.7 Mt.
India’s total annual crude steel capacity stood at 222.9 Mt, comprising 117.4 Mt among the top seven producer groups and 105.4 Mt among the remaining producers, as reported in the Ministry’s data.
The top seven groups include SAIL, RINL, NSL, TSL Group, AM/NS, JSL (JSPL) and JSW Group.
The public sector accounted for 15.5% of crude steel production, 29.4% of hot metal production and 13.5% of finished steel production during the period. Its share of annual crude steel capacity was 13.9%.
Read also: SAIL Records 1% Growth in Crude Steel Production in H1 FY27, Finished Steel Output Reaches 8.39 MT
Steel Prices Surge Across Major Products in September 2026
Steel prices recorded substantial increases in September 2026 compared with both the previous month and the corresponding month last year.
According to the Ministry of Steel, average prices across four metropolitan cities—Kolkata, Delhi, Mumbai and Chennai—increased across all four major steel products covered in the report.
September Steel Prices and Changes
- TMT bars (10 mm): The average price rose to ₹65,298 per tonne from ₹58,002 in August, registering a month-on-month increase of 12.6% and year-on-year growth of 21%.
- Hot-rolled (HR) coil (2 mm): Prices increased to ₹76,085 per tonne from ₹70,448 in August, up 8% month-on-month and 26.8% year-on-year.
- Cold-rolled (CR) coil (0.63 mm): Prices reached ₹84,972 per tonne, compared with ₹76,462 in August, marking an 11.1% monthly increase and 28.8% annual growth.
- Galvanised plain (GP) sheet (0.63 mm): Prices climbed to ₹94,148 per tonne from ₹86,668 in August, registering growth of 8.6% month-on-month and 27.7% year-on-year.
All prices include GST and represent average prices across the four metropolitan cities.
Domestic Steel Consumption Grows 7.5% in H1
Domestic demand for finished steel remained strong during the first half of FY 2026-27.
Finished steel consumption increased to 84.9 Mt during April–September 2026, compared with 79 Mt in the corresponding period of FY 2025-26, registering year-on-year growth of 7.5%.
In September 2026, consumption reached 14.4 Mt, up 8% from 13.3 Mt in September 2025.
The rise in consumption indicates continued growth in demand for finished steel across the domestic market during the reporting period.
Steel Imports Rise Faster Than Exports in H1 FY 2026-27
India’s finished steel trade recorded increases in both imports and exports during April–September 2026. However, imports remained higher than exports in volume terms.
Finished Steel Import and Export Data
Imports
- Import volume increased to 4.142 Mt from 3.345 Mt in the corresponding period last year, registering growth of 23.8%.
- Import value rose to ₹43,690.1 crore from ₹31,205.4 crore, an increase of 40%.
Exports
- Export volume reached 3.548 Mt, compared with 2.810 Mt a year earlier, marking growth of 26.2%.
- Export value increased to ₹28,263.7 crore from ₹21,931.5 crore, up 28.9%.
Consequently, India remained a net importer of finished steel in volume terms during the first half of FY 2026-27.
September Trade Trends
In September 2026, finished steel imports stood at 654,400 tonnes, up 0.4% from 651,900 tonnes in September 2025. Their value increased 48.9% year-on-year to ₹7,496.2 crore.
Exports declined 3.8% in volume terms to 561,800 tonnes from 584,000 tonnes. However, export value increased 14.8% to ₹4,617.1 crore.
Raw Material Prices Show Mixed Trends
Domestic raw material prices recorded different movements in September 2026, with scrap prices increasing while the prices of some iron ore and manganese ore products remained relatively stable.
Major Raw Material Price Movements
- NMDC Baila lump iron ore: The price increased to ₹5,400 per tonne from ₹5,250 in August, a month-on-month rise of 2.9%.
- NMDC Baila fines iron ore: The price remained unchanged at ₹4,500 per tonne.
- MOIL manganese ore lump: The price remained stable at ₹17,603 per tonne.
- Heavy melting scrap (HMS II): The price rose to ₹43,810 per tonne from ₹39,970 in August, marking an increase of 9.6%.
These movements reflect varying price trends across the raw materials used in steel production.
Nifty Metal Index and Manufacturing PMI Record Key Changes
The key market and economic indicators tracked in the Ministry of Steel’s report showed mixed month-on-month movements in September 2026.
- Nifty Metal Index: The monthly average declined 1% to 13,053.7 from 13,181.8 in August. However, it remained 32.7% higher than its September 2025 level.
- Manufacturing Purchasing Managers’ Index (PMI): The index rose to 55.1 from 52.8 in August, recording a month-on-month increase of 4.4%. It was 4.5% lower year-on-year.
- Baltic Dry Index: The monthly average increased 15.5% to 3,407.7 from 2,951.1 in August, representing year-on-year growth of 60.4%.
The data were sourced from the National Stock Exchange (NSE), S&P Global and Trading Economics.
Ministry of Steel Plans Industry Safety Council
The Ministry of Steel has decided to establish a Steel Industry Safety Council (SISC) to strengthen safety standards, prevent accidents and promote a stronger safety culture across India’s steel industry.
The council will serve as an apex body chaired by the Secretary of the Ministry of Steel. A dedicated Steel Industry Safety Directorate (SISD) will support its work.
The directorate will undertake safety audits, investigate serious incidents and issue safety standards suited to Indian conditions. Its coverage will include iron and steel producers as well as mines operated by central public sector enterprises (CPSEs).
The initiative is aimed at strengthening institutional oversight and improving workplace safety across the steel industry’s operations.
NMDC Commissions 2 MTPA Pellet Plant at Nagarnar
NMDC has commissioned its 2 million tonnes per annum (MTPA) pellet plant at Nagarnar in Chhattisgarh, completing an integrated project worth ₹5,427 crore.
The project includes three major components:
- An iron ore processing plant at Bacheli.
- A 135-kilometre slurry pipeline with a capacity of 15 MTPA.
- A pellet plant at Nagarnar using Straight Grate Induration technology.
The facility will support value addition from Bailadila iron ore fines and slimes. It is also expected to reduce road transportation of iron ore and strengthen NMDC’s presence across the iron ore value chain.
NMDC Iron Ore Production Increases
NMDC’s iron ore production increased 8% year-on-year to 4.04 Mt in September 2026.
During the first half of FY 2026-27, the company’s cumulative production reached 27.3 Mt, up nearly 23% compared with the corresponding period of FY 2025-26.
The growth keeps NMDC on track towards its annual production targets.
SAIL and BCCL Sign MoU for Joint Coal Block Development
Steel Authority of India Limited (SAIL) and Bharat Coking Coal Limited (BCCL) have signed a memorandum of understanding (MoU) for the joint development and operation of two coal blocks in West Bengal.
The agreement covers SAIL’s Indikatta Ramnagore Coal Block and BCCL’s East of Damagoria (Kalyaneshwari) Coal Block.
The partnership aims to strengthen cooperation between the two central public sector enterprises and support the development of domestic coking coal sources.
Coking coal is an important raw material for the conventional blast furnace-based steelmaking process. The collaboration is intended to strengthen domestic sourcing and support the steel industry’s raw material requirements.
SAIL Introduces AI-Based Safety Surveillance at Rourkela Steel Plant
SAIL’s Rourkela Steel Plant has commissioned an in-house artificial intelligence (AI)-based safety surveillance system at Hot Strip Mill-2.
The system uses 10 internet protocol (IP) cameras and computer vision technology to detect violations of helmet requirements and trigger automated alarms.
It also records time-stamped events, supporting safety monitoring and incident tracking.
Future phases of the system are planned to cover additional personal protective equipment (PPE) violations, unsafe acts, fire incidents and other workplace hazards.
The initiative represents an application of AI technology to improve industrial safety and strengthen monitoring at steel manufacturing facilities.
Green Steel Certification Expands Across India
Under the Ministry of Steel’s Green Steel Initiative, 101 distinct steel producers had been issued Green Steel Certificates across the lists released up to September 2026.
The certification covers a range of products, including:
- TMT bars.
- Hot-rolled and cold-rolled coils.
- Steel plates.
- Wire rods.
- Pipes and other steel products.
A large majority of the certified products received five-star ratings, according to the Ministry’s update.
The initiative supports the adoption of lower-emission steelmaking practices and promotes the development of a more sustainable steel industry in India.
Jadavpur University to Establish Green Hydrogen Research Centre
Jadavpur University, in collaboration with SAIL, Damodar Valley Corporation (DVC) and Hindustan Urvarak & Rasayan Limited (HURL), is setting up a Centre of Excellence for green hydrogen research at a cost of ₹8.18 crore.
The centre is one of four approved by the Ministry of New and Renewable Energy.
SAIL will test and apply the technologies developed through the research at its facilities. The initiative is intended to support the use of green hydrogen in steelmaking, power generation and fertiliser production.
The project aligns with the National Green Hydrogen Mission and supports research into cleaner industrial energy solutions.
About SAIL
Steel Authority of India Limited (SAIL) is a Maharatna central public sector enterprise under the Ministry of Steel, Government of India. It is one of India’s major steel producers, with integrated steel plants and a broad portfolio of steel products serving infrastructure, construction, engineering and other industrial sectors. Through initiatives such as AI-based safety surveillance at Rourkela Steel Plant, collaboration with BCCL for domestic coking coal development and participation in green hydrogen research, SAIL is contributing to industrial safety, raw material security and the transition towards more sustainable steel production.
Read also: India’s Steel Demand Climbs 7.4% as Consumption Hits 70.5 MT in Apr-Aug
