India’s Steel Sector Grows in H1 FY27 as Production and Demand Rise

India produced 85.1 million tonnes of crude steel in the six months to September, 2.9% more than in the same period last year. Finished steel output stood at 81.8 million tonnes, up 3.7%. 

Steel use also grew faster than production. Finished steel consumption was up 7.5% at 84.9 million tonnes in the first half of FY27. 

Steel Production in H1 FY27 

Steel production was higher in the first six months of FY27. Hot metal output rose 2.5% from a year earlier to 48.3 million tonnes. 

September also saw higher output. Crude steel production came in at 14.1 million tonnes, up 3.4% year-on-year, while finished steel production rose 1.9% to 13.5 million tonnes. 

The seven largest producers include SAIL, RINL, Tata Steel, JSW, AM/NS and JSPL. Public sector companies made up 15.5% of crude steel production. 

Steel Consumption Rises 7.5% 

The Finished steel consumption has risen 7.5% to 84.9 million tonnes in H1 FY27. In September, consumption stood at 14.4 million tonnes, up 8% year-on-year. 

India was still a net importer of finished steel during the period. Imports increased 23.8% to 4.14 million tonnes, while exports rose 26.2% to 3.55 million tonnes. 

Steel Prices Move Higher 

Steel prices also went up in September. TMT prices reached ₹65,298 per tonne, rising 12.6% from August and 21% from a year earlier. HR coil prices rose 8% month-on-month to ₹76,085 per tonne and were 26.8% higher year-on-year. 

CR coil prices stood at ₹84,972 per tonne, up 11.1% from August. GP sheet prices rose 8.6% month-on-month to ₹94,148 per tonne. 

Other Changes in the Steel Industry 

The Ministry of Steel has decided to set up a Steel Industry Safety Council and a separate Safety Directorate to improve safety standards across the sector. 

NMDC commissioned its 2 MTPA pellet plant at Nagarnar and reported 23% growth in iron ore production during the first half of FY27. SAIL and BCCL also signed an MoU for developing coal blocks together. 

Under the Green Steel Initiative, 101 steel producers have received Green Steel Certificates so far. 

Read More: Axis Bank Share Price in Focus After It Reports Q2 FY27 Financial Update! 

Conclusion 

The first six months of FY27 were positive for India’s steel industry, with both production and consumption higher than a year ago. Steel prices also saw a clear rise in September, while the industry continued to see new steps around safety, green steel and raw material availability. 

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