India’s Finished Steel Consumption Rises 7.5% to 84.9 Million Tonnes in H1 FY27

India’s finished steel consumption increased 7.5% year-on-year to 84.9 million tonnes during April–September 2026, reflecting sustained demand across the country’s industrial and infrastructure sectors. Crude steel production also grew, rising 2.9% to 85.1 million tonnes during the first half of the 2026–27 financial year, according to the Ministry of Steel’s latest half-year update.

The figures indicate that steel consumption continued to expand faster than finished steel production. In September 2026 alone, finished steel consumption grew 8% year-on-year, compared with production growth of 1.9%. India remained a net importer of finished steel by volume during the April–September period, with imports exceeding exports by approximately 0.60 million tonnes.

Steel Prices Rise Across Major Markets

Domestic steel prices recorded significant annual increases in September. The average price of 10 mm TMT bars across Kolkata, Delhi, Mumbai and Chennai reached ₹65,298 per tonne, up 21% year-on-year. Hot-rolled steel coil prices also climbed, with 2 mm HR coil averaging ₹76,085 per tonne, an increase of 26.8%.

The price movements come amid continued demand from construction, infrastructure and manufacturing, although rising steel costs remain an important consideration for developers, contractors and industrial buyers.

Safety Measures and Green Steel Gain Attention

The Ministry of Steel is setting up a Steel Industry Safety Council to strengthen workplace safety standards and accident prevention across the sector. A dedicated Steel Industry Safety Directorate will support the council through safety audits, investigations into serious incidents and the development of industry-specific standards.

Technology is also becoming part of workplace safety initiatives. SAIL’s Rourkela Steel Plant has commissioned an artificial intelligence-based surveillance system at Hot Strip Mill-2. Using 10 internet protocol cameras and computer vision, the system identifies helmet violations and triggers automated alarms. Further phases are expected to cover additional personal protective equipment violations and other workplace hazards.

Meanwhile, the government’s Green Steel Initiative has issued certificates to 101 distinct steel producers through September 2026. Certified products include TMT bars, hot- and cold-rolled coils, plates, wire rods and pipes, with most certified products receiving five-star ratings.

Capacity and Raw Material Developments

NMDC has commissioned a 2-million-tonne-per-annum pellet plant at Nagarnar, Chhattisgarh, completing an integrated project valued at ₹5,427 crore. The project includes an iron ore processing plant at Bacheli and a 135-km slurry pipeline.

NMDC produced 27.3 million tonnes of iron ore during the first half of Financial Year 2026–27, up nearly 23% year-on-year. These developments, alongside stronger domestic steel consumption, highlight the importance of raw material security, production efficiency and lower-emission manufacturing as India’s steel industry expands.