Key Details
The Ministry of Steel’s first-half figures show demand growing faster than domestic finished-steel production. The release also reports trade, prices and sector initiatives that need to be read separately from the draft policy’s long-term targets.
Indicator | April–September 2026 | Change from a Year Earlier |
|---|---|---|
Finished-steel production | 82.0 million tonnes | +4.1% |
Finished-steel consumption | 85.0 million tonnes | +7.6% |
Finished-steel imports | 4.14 million tonnes | +23.8% |
Finished-steel exports | 3.55 million tonnes | +26.2% |
Trade position: Imports exceeded exports by 0.59 million tonnes. China and South Korea supplied 31.8% and 31.1% of finished-steel imports, respectively.
Different products, different trends: Alloy-steel production rose 32.0%, while stainless-steel production fell 3.5% and stainless-steel imports more than doubled.
Prices: October prices for four selected steel products were 26–34% higher year-on-year, based on the release’s GST-inclusive averages across four metro cities.
Long-term policy: The draft National Steel Policy – Vision 2047 targets 604 million tonnes of crude-steel capacity, 302 kg of per-capita consumption and 45 million tonnes of exports by 2047. It also aims to lower emissions intensity from 2.54 to about 1.54 tonnes of CO₂ per tonne of crude steel.
Green-steel measures: The ministry reports 104 distinct producers issued Green Steel Certificates across lists published up to October 2026. NMDC has signed an agreement to replace furnace oil with re-gasified liquefied natural gas at its Nagarnar pellet plant.
Rising Demand Is Not Producing a Uniform Import Story
Finished-steel consumption grew faster than output in the first half of FY27. Both imports and exports increased, but imports remained higher, leaving India a net importer by volume. That does not establish a general shortage of domestic steel: the trade figures cover different products and grades, and firms may import steel for reasons of specification, price or availability.
The product breakdown makes this distinction more important. Alloy-steel output rose strongly, while stainless-steel output contracted as its imports surged. A response focused only on aggregate steel capacity would miss these differences in domestic supply and demand.
Prices and the Draft Vision Add a Longer View
The release’s October price series shows substantial year-on-year increases for selected products, including TMT bars and steel coils. These are four-city average quoted prices, not a measure of prices paid by every steel buyer. They nevertheless add a cost dimension to the production and trade figures for industries that use steel.
The Ministry of Steel has also prepared a draft National Steel Policy – Vision 2047 setting targets for capacity, consumption, export and emissions-intensity by 2047. The draft links a much larger steel industry with a lower-emission production process—an ambition that would require changes in technology and energy supply as well as additional capacity.
Green-Steel Certification Is Growing, but Measures Products, Not Sector-Wide Progress
The reported 104 certified producers show participation in the ministry’s Green Steel Initiative across products such as bars, coils, plates and pipes. Certification identifies qualifying production under the initiative; the count does not, by itself, show how much of India’s total steel output is lower-emission or how far sector-wide emissions intensity has fallen.
NMDC’s gas-supply agreement is a separate operational step. Replacing furnace oil at its Nagarnar pellet plant is expected to reduce emissions and improve efficiency, but the release does not report savings already achieved.
Policy Relevance
The immediate industrial issue is where demand is outpacing competitive domestic supply, particularly across product categories rather than steel as a single market. Import volumes, product mix and buyer prices together offer a more useful picture than the net-import figure alone.
The draft 2047 policy poses a parallel investment question: how to expand capacity while lowering emissions per tonne of crude steel. Green Steel Certificates and individual fuel-switching agreements are signs of activity, but tracking their contribution will require data on certified output and actual emissions performance alongside production and trade.
Follow the Full Release Here: Domestic Demand Drives India’s Steel Sector in H1 FY 2026–27