Steel demand increases 8% in April as prices recover across segments

India's finished steel consumption rose 8.1 per cent in April 2026, while prices of long and flat steel products recovered amid stronger demand conditions

India’s steel sector extended its growth momentum in April 2026, with finished steel consumption rising 8.1 per cent year-on-year (Y-o-Y) to 12.99 million tonnes, even as domestic prices recovered across major categories, according to a statement from the Steel Ministry.

 

The robust demand, driven by construction, infrastructure and manufacturing activity, came alongside a 5.8 per cent increase in crude steel production to 14.09 million tonnes. Finished steel production stood at 13.05 million tonnes, up 3.4 per cent, while hot metal output rose 5.4 per cent. However, pig iron production declined 6 per cent to 0.69 million tonnes.

 

On the trade front, India remained a marginal net importer during the month, with imports rising sharply by 30.8 per cent to 0.68 million tonnes, outpacing exports, which grew 24.9 per cent to 0.47 million tonnes.

 

 

Steel prices showed a broad-based recovery in April. Long steel products such as TMT rebar prices increased about 2.6 per cent month-on-month (M-o-M) and were up 3 per cent Y-o-Y, the first positive annual movement after months of softness. Flat steel prices recorded stronger gains, with hot-rolled (HR) coil prices rising around 6.3 per cent and GP sheet prices up 7.3 per cent M-o-M, reflecting improved demand conditions.

 

Raw material trends remained mixed but firm. Domestic iron ore prices rose 10-11 per cent M-o-M, while international coking coal prices edged higher, keeping input cost pressures elevated for integrated producers. Scrap prices remained largely stable.

 

On the capacity front, India’s steelmaking capacity reached about 220 million tonnes per annum in FY26, progressing towards the National Steel Policy target of 300 million tonnes per annum (MTPA) by 2030. Major companies such as SAIL, Tata Steel, JSW Steel, JSPL and AMNS continued expansion efforts, including Tata Steel’s commissioning of a ₹3,200 crore scrap-based green steel plant in Ludhiana.

 

The government also highlighted progress under its green steel initiative, with 90 producers across 15 states receiving certification as of March 2026, indicating growing adoption of low-emission steel production.

 

The ministry said the sector remains well-positioned for sustained growth, supported by infrastructure spending and manufacturing expansion, although challenges from input costs and global trade dynamics persist.