Indian Steel Sector Records Continuous Growth in First Half of FY 2026-27
India's steel sector has seen an increase in both production and consumption during the first half of FY 2026-27, with a strong focus on safety and green steel initiatives.
The Indian steel sector has recorded continuous growth in the first half of the financial year 2026-27. According to official data, crude steel production during the period from April to September 2026 stood at 85.1 million tonnes, marking a 2.9 percent increase compared to the 82.7 million tonnes produced during the same period last year. Finished steel production for the same period was 81.8 million tonnes, reflecting a growth of 3.7 percent.
On the demand side, there was a notable rise in the consumption of finished steel. Between April and September 2026, consumption reached 84.9 million tonnes, up 7.5 percent from the 79.0 million tonnes recorded in the corresponding period of the previous year. Regarding trade dynamics, India remained a net importer of finished steel by volume during this period. In September 2026, imports were recorded at 654.4 thousand tonnes, while exports stood at 561.8 thousand tonnes.
Price analysis indicates that in September 2026, the price of TMT (10 mm) was ₹65,298 per tonne, while the price of HR Coil (2 mm) was recorded at ₹76,085 per tonne.
Under policy initiatives, the Ministry of Steel has decided to establish the 'Steel Industry Safety Council' (SISC), chaired by the Secretary of the Ministry, to strengthen safety standards. To support this council, a dedicated 'Steel Industry Safety Directorate' (SISD) will also be created. Additionally, SAIL's Rourkela Steel Plant has implemented an AI-based safety monitoring system at Hot Strip Mill-2, which utilizes computer vision and IP cameras to detect helmet-related violations.
In terms of developmental projects, NMDC has commissioned its 2 million tonnes per annum (MTPA) pellet plant as part of an integrated project costing ₹5,427 crore in Nagarnar, Chhattisgarh. Furthermore, SAIL and Bharat Coking Coal Limited (BCCL) have signed a Memorandum of Understanding for the joint development of coal blocks in West Bengal.
As part of green steel initiatives, green steel certificates were issued to 101 different steel producers by September 2026. Moreover, Jadavpur University, in collaboration with SAIL, DVC, and HURL, is establishing a Center of Excellence for green hydrogen research at a cost of ₹8.18 crore. This center will promote the use of green hydrogen in steel, power, and fertilizer production under the National Green Hydrogen Mission.
