New Delhi: The domestic consumption of finished steel grew by 7-8 per cent to 164 million tonnes in FY26 on the back of increased activity in infrastructure, construction, railways, and manufacturing sectors.
The country’s crude steel output grew by over 10.7 per cent to around 168.4 million tonnes during the financial year, reflecting sustained industrial momentum.
“Domestic demand remained the key growth driver with finished steel consumption (164 MnT), expanding by about 7–8 per cent, driven by increased activity in infrastructure, construction, railways, and manufacturing sectors,” the steel ministry said in a statement.
Exports of finished steel products also increased by 35.9 per cent, reaching over 6 million tonnes during the fiscal year ended March 2026, while imports declined sharply by 31.7 per cent, it said.
The industry witnessed continued investments aimed at expanding production capacity. India’s total steel capacity, which stood at about 220 million tonnes in 2025-26, is projected to reach 300 million tonnes by 2030, supported by both public and private sector investments.
Major players such as SAIL, Tata Steel and JSW Steel continued to invest in capacity expansion, technology upgrades, and value-added steel production, reflecting confidence in long-term demand growth.
Steel prices in the country followed a downward trend over the past three years before recovering in early 2026. However, the profitability of steel makers remained under pressure due to fluctuating raw material costs, especially coking coal, and volatile global prices.
Increased logistics and freight costs also affected margins towards the end of the year due to the geopolitical crisis, the ministry said.
Disruptions in gas supplies from the Middle East led to shortages of industrial fuels such as LPG, threatening production continuity for several steel manufacturers.
The government intervened by increasing LPG allocations to key sectors, including steel, to cushion the impact and maintain output levels.
Additionally, rising energy costs and supply chain disruptions highlighted the sector’s vulnerability to global shocks, it said.