India’s steel sector has expanded at a steady pace in the first half of financial year 2026-27, according to provisional data released by the Ministry of Steel. Crude steel production reached 85.1 million tonnes between April and September 2026, marking a 2.9 per cent increase over the same period in the previous year. The sector is also seeing new safety standards, green certification schemes and infrastructure projects being rolled out.
Key facts
- Crude steel production H1 FY26-27: 85.1 million tonnes (up 2.9% year-on-year)
- Finished steel production H1: 81.8 million tonnes (up 3.7% year-on-year)
- September 2026 crude steel output: 14.1 million tonnes
- Finished steel consumption H1: 84.9 million tonnes (up 7.5% year-on-year)
- Top 7 producers (SAIL, RINL, NSL, TSL Group, AM/NS, JSPL, JSW) account for 47.7 million tonnes of crude steel production
- Steel imports April-September 2026: 4.14 million tonnes (up 23.8% year-on-year)
- Steel exports April-September 2026: 3.55 million tonnes (up 26.2% year-on-year)
- TMT bar prices in September 2026: Rs 65,298 per tonne (up 21% year-on-year)
- Hot rolled coil prices: Rs 76,085 per tonne (up 26.8% year-on-year)
- NMDC pellet plant at Nagarnar: 2 million tonnes per annum capacity, part of Rs 5,427-crore project
- Green Steel Certificates issued to 101 steel producers as of September 2026
- Green hydrogen research centre at Jadavpur University: Rs 8.18 crore investment
Production trends and sector performance
Steel production has held steady across major categories. Hot metal production stood at 48.3 million tonnes in the first half, up 2.5 per cent from the year before. The sector saw finished steel consumption climb to 84.9 million tonnes, a 7.5 per cent year-on-year increase, indicating growing demand from construction, manufacturing and infrastructure projects.
The top seven steel producers, which include Steel Authority of India Limited (SAIL), Rashtriya Ispat Nigam Limited (RINL), and private firms like JSW Steel and Jindal Steel and Power Limited, produced 47.7 million tonnes of crude steel in the first half. Smaller producers outside this group contributed 37.4 million tonnes. The public sector maintained a 15.5 per cent share of total crude steel production during this period.
Price movements and trade
Steel prices have risen sharply across product categories. Thermo-mechanically treated (TMT) bars, commonly used in construction, cost Rs 65,298 per tonne in September 2026, up 21 per cent year-on-year. Hot rolled coils jumped to Rs 76,085 per tonne, a 26.8 per cent increase, while cold rolled coils and galvanised sheets also saw similar gains in the 27-29 per cent range.
India imported 4.14 million tonnes of finished steel between April and September 2026, up 23.8 per cent from the previous year. The import bill rose by 40 per cent to Rs 43,690 crore, reflecting both higher volumes and elevated global prices. Exports of finished steel reached 3.55 million tonnes, a 26.2 per cent increase, worth Rs 28,264 crore. India remained a net importer of finished steel by quantity during this half-year.
Raw material supply and costs
Domestic iron ore prices, set by state miner NMDC, have remained relatively stable. NMDC’s lump ore was priced at Rs 5,400 per tonne in September 2026, while fines remained at Rs 4,500 per tonne. Scrap prices, however, showed volatility, rising 9.6 per cent month-on-month to Rs 43,810 per tonne by September.
NMDC increased its iron ore output by 8 per cent year-on-year in September 2026 to 4.04 million tonnes, with the first half production reaching 27.3 million tonnes, nearly 23 per cent higher than the previous year. This boost has been aided by the commissioning of NMDC’s new 2 million tonnes per annum pellet plant at Nagarnar, Chhattisgarh. The Rs 5,427-crore integrated project includes an iron ore processing facility at Bacheli and a 135-kilometre slurry pipeline. The Nagarnar plant will process ore fines and slimes, adding value and reducing transport costs.
Safety and green steel initiatives
The Ministry of Steel has established a Steel Industry Safety Council, chaired by the ministry’s secretary, to standardise safety practices across the industry. A dedicated Steel Industry Safety Directorate will conduct audits, investigate accidents and set safety standards tailored to Indian conditions for both private and public sector steel and mining companies.
Under the Green Steel Initiative, 101 steel producers have received Green Steel Certificates for lower-emission production methods. Products certified include TMT bars, coils, plates, wire rods and pipes, with the majority receiving 5-star ratings.
SAIL and state-owned Bharat Coking Coal Limited have signed an agreement to jointly develop and operate coking coal blocks in West Bengal, strengthening domestic coal sourcing. SAIL’s Rourkela Steel Plant has also deployed an artificial intelligence-based surveillance system at its Hot Strip Mill to detect safety violations and trigger automated alerts.
A new Centre of Excellence for green hydrogen research is being set up at Jadavpur University with Rs 8.18 crore funding, supported by SAIL, state power company DVC and others. The centre will develop hydrogen-based steelmaking technologies aligned with India’s National Green Hydrogen Mission.
What this means for you
Construction costs linked to steel prices—from building reinforcement to machinery—may remain elevated given the 20-27 per cent year-on-year price increases seen in key products. Manufacturing industries depending on steel will face higher input costs. However, rising domestic production and capacity additions offer a buffer against import reliance. Workers in the steel sector will benefit from strengthened safety standards. Long-term, investments in green hydrogen and lower-emission production may eventually help moderate price premiums and support India’s climate goals.