Finished steel use up 6.5% in July as prices soften, imports still higher

India's finished steel consumption continued its upward trajectory in July, supported by healthy domestic demand, while the country remained a net importer of finished steel despite a sharp rise in exports, according to data released by the Ministry of Steel on Thursday. Finished steel consumption increased 6.5 per cent year-on-year to 14.4 million tonnes (Mt) in July, compared with 13.5 Mt in the corresponding month last year. During the first four months of FY27 (April-July), consumption rose 7.8 per cent to 55.9 Mt, reflecting sustained demand from infrastructure, construction, manufacturing and engineering sectors.

India remains a net steel importer

The ministry said India continued to be a net importer of finished steel during the April-July period, even though exports recorded strong growth. Finished steel imports increased 9.5 per cent year-on-year, while exports jumped 44.1 per cent over the same period, indicating stronger overseas demand for Indian steel products but insufficient to offset import volumes. The data suggests that domestic consumption continues to outpace local supply in certain product categories despite steady production growth.

Production records modest growth

Steel production remained stable during July. Crude steel output rose 1.2 per cent year-on-year to 14.3 million tonnes, while hot metal production increased 1.6 per cent to 8.1 million tonnes. Finished steel production grew 1.4 per cent to 13.7 million tonnes during the month. For the April-July period, crude steel production reached 56.3 million tonnes, up 2.6 per cent from a year earlier. Finished steel output increased 4 per cent to 54.3 million tonnes, while hot metal production rose 1.5 per cent to 31.6 million tonnes.

Steel prices soften in July

The ministry's data showed that domestic steel prices moderated during July across major product categories. Prices of 10 mm TMT bars declined 5.6 per cent month-on-month to ₹56,698 per tonne, while hot-rolled (HR) coil prices edged down 0.4 per cent to ₹69,828 per tonne. Prices of cold-rolled (CR) coils and galvanised plain (GP) sheets also eased marginally during the month. Despite the sequential decline, prices of all major steel products remained above their levels recorded a year ago.

Major producers dominate output

India's seven largest steel producers accounted for 31.2 million tonnes of crude steel production during April-July, contributing more than half of the country's total output. Among public sector companies, Steel Authority of India Limited (SAIL) strengthened its strategic manufacturing capabilities after receiving a Licence Agreement for Transfer of Technology (LAToT) from the Defence Metallurgical Research Laboratory (DMRL), a DRDO laboratory. The agreement enables SAIL to manufacture specialised DMR-249A, DMR-249B and DMR-249BK grades of steel used in naval warships and submarines.

NMDC expands production and overseas outreach

State-owned miner NMDC also reported robust operational performance. The company produced 4.06 million tonnes of iron ore during the month, registering a 31 per cent year-on-year increase. Its cumulative production during FY27 reached 19.16 million tonnes, while sales stood at 15.15 million tonnes. The ministry also said an NMDC delegation visited Argentina to explore investment opportunities and strategic partnerships in copper and other critical minerals, as part of the company's efforts to strengthen its international mineral portfolio and support India's long-term resource security.