India's steel sector posted broad-based growth in the first quarter of FY2026-27 with finished steel consumption rising at a faster pace than production, while the country remained a net importer of finished steel, according to data released by the Ministry of Steel on Monday.
The ministry's latest provisional data showed finished steel consumption grew 8.3 per cent year-on-year to 41.6 million tonnes during April-June 2026, outpacing finished steel production, which increased 5.9 per cent to 41.0 million tonnes, indicating continued strength in domestic demand.
On a monthly basis, finished steel consumption rose 7.2 per cent year-on-year to 14.2 million tonnes in June, while finished steel production increased 6 per cent to 13.8 million tonnes. The Ministry of Steel said the country’s steel sector recorded growth in Q1 FY2026 across key production and consumption indicators.
Crude steel production also remained on a growth path. According to the ministry, crude steel output rose 3 per cent year-on-year to 42.1 million tonnes during April-June, while June production increased 3.9 per cent to 14.1 million tonnes. The data also highlighted India's continued dependence on imports to meet domestic demand.
The ministry said India was net importer of finished steel in terms of quantity for the period of Apr-Jun 2026. Finished steel imports rose sharply during the quarter. Imports increased 49.2 per cent year-on-year to 2.06 million tonnes during April-June, while exports rose 31.4 per cent to 1.59 million tonnes over the same period.
The release also showed that domestic steel prices softened during June compared with May. Manganese ore prices also fell, while scrap prices declined. Highlighting industry developments, the ministry said the country's steelmaking capacity remained at 221.9 million tonnes per annum, supporting progress towards the National Steel Policy target of 300 million tonnes by 2030.
The ministry also noted several policy and industry initiatives during the month, including a digital transformation drive for the steel sector, the grant of Miniratna Category-I status to MECON, the anti-dumping investigation into hot-rolled flat steel imports from China, Japan and Russia, and the commencement of construction of JSW Group's proposed 2 MTPA integrated steel plant in Kadapa, Andhra Pradesh.
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