India’s Steel Production Grows in Q1 FY27 As Crude Steel Reaches 42.1 Million Tonnes, Consumption Rises 8.3%

India produced 42.1 million tonnes (Mt) of crude steel during April-June FY2026-27, up 3% from 40.8 Mt in the same period last year, according to a PIB report citing the Ministry of Steel.  

Finished steel production increased 4.9% to 40.6 Mt, while hot metal output rose 1.4% to 23.5 Mt. In June alone, crude steel production stood at 14.1 Mt, compared with 13.5 Mt a year earlier. 

Consumption Remains Higher 

Domestic steel demand continued to grow during the quarter. Finished steel consumption reached 41.6 Mt, an increase of 8.3% year-on-year. June consumption stood at 14.2 Mt, up 7.5% from the corresponding month of 2025.  

Alloy steel production rose 28.2% to 2.73 Mt, while consumption increased 25.6%. Stainless steel production slipped 1.9%, although consumption rose 27.5% during the quarter. 

Trade and Price Trends 

India remained a net importer of finished steel during April-June. Imports increased 49.2% to 2.06 Mt, while exports rose 31.4% to 1.59 Mt.  

China, South Korea and Japan together accounted for more than three-fourths of total imports. Among exports, the UAE and Vietnam were the largest destinations. 

Steel prices moved lower in July. The average price of 10 mm TMT bars fell to ₹56,698 per tonne, down 5.6% from June. HR coil prices declined marginally to ₹69,828 per tonne, while CR coils and GP sheets also recorded small month-on-month declines.  

Raw material prices, including iron ore, manganese ore and scrap, also softened during the month. 

Capacity and Industry Developments 

India's crude steelmaking capacity stood at around 222 million tonnes per annum (MTPA) as of June 2026. During the quarter, Bhilai Steel Plant signed an agreement with MECON for expansion from 7 MTPA to 10.2 MTPA.  

Separately, SAIL said Bokaro Steel Plant will receive about 8.3 million tonnes of iron ore annually through the 258-km Jamda-Bokaro slurry pipeline.  

The Ministry of Steel also issued Green Steel Certificates to 97 producers across 15 states. 

Read More: Centre Approves 117 Tourism Infrastructure Projects Worth ₹5,756 Crore to Boost Travel Across India! 

Conclusion 

Crude and finished steel production increased during April-June FY2026-27, supported by higher domestic consumption. Trade activity and capacity addition projects also continued during the quarter. 

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