India’s Steel Consumption Rises 3.9% in August Despite Monthly Production Decline

India’s steel market recorded mixed performance in August 2026, with domestic consumption continuing to grow on an annual basis even as crude and finished steel production declined from July levels, according to provisional data from the Joint Plant Committee (JPC).

Crude steel production stood at 14.102 million tonnes in August, down 1.8% from 14.354 million tonnes in July. On a year-on-year basis, production was broadly unchanged from the 14.117 million tonnes recorded in August 2025.

Finished steel production also declined during the month. Output fell 3.9% month-on-month to 13.482 million tonnes from 14.032 million tonnes in July. However, the August figure was largely unchanged compared with 13.444 million tonnes produced during the same month last year.

Domestic steel consumption showed a more resilient trend. Finished steel consumption declined marginally by 0.5% month-on-month to 14.316 million tonnes from 14.394 million tonnes in July. Despite the monthly dip, consumption was 3.9% higher than the 13.785 million tonnes recorded in August 2025.

India also remained a net importer of finished steel during August. Finished steel imports rose 2.7% month-on-month to 0.721 million tonnes, compared with 0.702 million tonnes in July. Imports were also 7.9% higher year-on-year.

Finished steel exports, meanwhile, fell 0.7% month-on-month to 0.694 million tonnes. On an annual basis, exports increased sharply by 31.4% from 0.528 million tonnes in August 2025. Imports therefore exceeded exports by around 0.027 million tonnes during the month.

The cumulative numbers for the first five months of the Financial Year 2026–27 present a stronger picture of underlying demand. Between April and August, crude steel production increased 1.9% year-on-year to 70.313 million tonnes, while finished steel production rose 3.8% to 68.139 million tonnes.

Finished steel consumption recorded a 7% increase during the same period, reaching 70.286 million tonnes compared with 65.671 million tonnes a year earlier. Exports rose 34.1% to 2.986 million tonnes, while imports increased 29.5% to 3.487 million tonnes.

Steel market activity is expected to strengthen after the monsoon, with infrastructure, construction and manufacturing demand likely to remain important drivers. Domestic prices will also depend on post-monsoon demand, import flows and overall supply conditions.