India remained a net importer of finished steel during the first two months of fiscal year 2026/27, with imports rising faster than exports, according to provisional data from the Joint Plant Committee (JPC).
Finished steel imports increased by 45pct YoY to 1.37 mln tons in April-May 2026, while exports rose 27.4pct to 0.98 mln tons. In May alone, imports jumped 62.5pct YoY to 0.69 mln tons, while exports increased 29.9pct to 0.51 mln tons.
On the production side, crude steel output reached 14.21 mln tons in May, up 2.9pct YoY. Finished steel production increased by 7.7pct to 13.94 mln tons, while finished steel consumption rose 9pct to 14.33 mln tons, according to the report.
During April-May, crude steel production totaled 28.04 mln tons, up 2.7pct YoY. Finished steel production increased 6.4pct to 27.36 mln tons, while consumption grew 8.7pct to 27.36 mln tons, supported by strong demand from the construction, infrastructure, and manufacturing sectors. India’s steelmaking capacity reached approximately 220 mln tons per annum during FY 2025/26.
Domestic steel prices softened in May, with rebar prices declining around 1.3pct month-on-month, while hot rolled coil and galvanized sheet prices eased by approximately 0.2pct. At the same time, raw material costs remained high.
Despite margin pressure from weaker steel prices and higher input costs, the Indian steel industry is expected to remain supported by robust infrastructure spending and expanding manufacturing activity, the report said.