India’s Steel Demand Rises 7.6% in April–September, but Imports Outpace Exports

Daily Newscap | 24 October 2026

Key points

• Finished steel consumption reached 85.0 million tonnes in April–September, up 7.6% year on year.
• Crude steel production grew 2.9% to 85.1 million tonnes.
• India remained a net importer of finished steel by volume during the half-year.

India’s steel industry ended the first half of the 2026–27 financial year with domestic demand rising faster than production. A Ministry of Steel statistical update released on 23 October puts finished steel consumption at 85.0 million tonnes during April–September, compared with 79.0 million tonnes a year earlier. That is a 7.6% increase. Crude steel production rose more slowly, by 2.9%, to 85.1 million tonnes. The figures describe different stages of the supply chain, so they should not be subtracted from one another to infer a shortage.

The September snapshot shows the same demand pattern. Finished steel consumption was 14.4 million tonnes, up from 13.3 million tonnes in September 2025, while crude steel production reached 13.9 million tonnes, up from 13.7 million tonnes. Finished steel production stood at 13.6 million tonnes for the month, a 3.2% annual increase. Monthly readings can be affected by project schedules, inventories and trade, and should be considered alongside the six-month series.

Why trade changes the picture

During April–September, India imported 4.14 million tonnes of finished steel and exported 3.55 million tonnes, making it a net importer in volume terms. Imports were up 23.8% from the previous year’s half-year, while exports also increased, by 26.2%. The two growth rates alone do not tell readers whether the trade balance improved: imports still exceeded exports by about 0.59 million tonnes in the reported period.

The ministry lists China and South Korea as the largest sources of finished steel imports by volume, with 1.32 million and 1.29 million tonnes respectively. The United Arab Emirates and Vietnam headed the export-destination table. These are aggregate trade figures; they do not establish why any one company bought or sold a particular product abroad. They also do not by themselves prove a particular effect of tariffs or safeguards.

Steel is a basic input for buildings, railways, machinery and consumer goods. Stronger consumption may therefore indicate activity across several downstream sectors, but the ministry’s release does not break demand down by final user. It is more accurate to say that recorded steel use increased than to attribute the whole rise to a single construction or manufacturing programme.

Prices and policy

The same release gives October average prices across four metro cities, including Chennai. It lists 10 mm TMT at ₹66,645 a tonne, 26% above the year-earlier level, and 2 mm hot-rolled coil at ₹77,620 a tonne, up 31.6%. These quoted product specifications and metro averages cannot stand in for every local retail quote. Buyers should compare the relevant grade, location, tax treatment and delivery terms before using them as a budget.

The ministry also refers to a draft National Steel Policy vision for 2047, including capacity and emissions-intensity targets. A draft target is an ambition, not installed capacity or achieved emissions reduction. For now, the useful reading of the October release is narrower: reported domestic use is growing, output is rising more gradually, imports exceed exports by volume, and some benchmark prices are considerably higher than a year ago. The next monthly release will show whether those patterns persist.

Source: Ministry of Steel, 23 October.