India's steel sector sustained its growth momentum in April 2026, with crude steel production rising 5.8% year-on-year to 14.09 million tonnes from 13.31 million tonnes in April 2025, according to an official statement issued on Wednesday, 6 May 2026. Domestic demand remained robust, underpinned by continued buoyancy in infrastructure and manufacturing end-use segments, while steel prices extended their recovery across major product categories.

Production and Consumption Highlights

Finished steel production reached 13.05 million tonnes in April, up 3.4% year-on-year (YoY), while finished steel consumption climbed 8.1% YoY to 12.99 million tonnes — driven primarily by strong performance in infrastructure and manufacturing segments. Hot metal production grew 5.4% YoY, though pig iron output declined 6% YoY to 0.69 million tonnes, reflecting a shift in production mix toward higher-value finished products.

Trade: India Turns Marginal Net Importer

On the trade front, steel imports stood at 0.68 million tonnes in April 2026, up 30.8% compared to 0.52 million tonnes in April 2025, making India a marginal net importer during the month. Exports reached 0.47 million tonnes, a 24.9% rise from 0.38 million tonnes in the same period last year. The sharp jump in imports warrants monitoring, particularly as global steel overcapacity — especially from China — continues to weigh on trade balances across major consuming nations.

Capacity Expansion and Green Steel Push

India's total steel capacity stood at approximately 220 MTPA in FY 2025–26, on track toward the National Steel Policy target of 300 MTPA by 2030. Major players including SAIL, Tata Steel, JSW Steel, JSPL, and AMNS continued investments in capacity expansion. Notably, Tata Steel recently commissioned a ₹3,200 crore scrap-based electric arc furnace (EAF) green steel plant of 0.75 MTPA capacity at Ludhiana — the first such facility in Punjab. Under the Ministry of Steel's Green Steel initiative, NISST had issued green steel certificates to 90 producers across 15 states as of 31 March 2026, with a majority of certified products achieving the highest 5-star rating.

Steel Prices and Raw Material Costs

TMT/Rebar prices rose approximately 2.6% month-on-month in April, also registering a 3% YoY gain — marking the first positive YoY reading after several months of softness. Flat steel prices saw sharper gains, with HR Coil up around 6.3% and GP Sheet up approximately 7.3% month-on-month. On the raw material side, NMDC lump and fines prices rose 10–11% month-on-month, while international coking coal costs edged higher, sustaining elevated input cost pressures for integrated BF-BOF producers entering Q1 FY 2026–27. International scrap prices remained broadly flat, offering relative stability for electric route steelmakers.

Outlook for the Sector

The Indian steel industry is considered well-positioned to sustain its growth trajectory, backed by continued infrastructure investment and expanding manufacturing activity, according to the official statement. Managing energy security, raw material cost volatility, and evolving global trade developments — including the impact of US tariff actions on global steel flows — will remain key priorities for the sector in the year ahead.