India’s steel industry closed calendar year 2025 on a firm note, with crude steel production registering a year-on-year increase in December, supported by steady domestic demand and improving export performance.
Production Trends Remain Positive
Provisional data released by the Joint Plant Committee (JPC) indicates that India produced approximately 14.15 million tonnes of crude steel in December 2025, reflecting a growth of around 3 percent compared to the same month last year. While the pace of growth moderated compared to earlier months, production levels remained resilient amid global economic uncertainty and volatile commodity markets.
Strong Performance in FY26 So Far
For the April–December 2025 period (FY26 to date), cumulative crude steel output stood at nearly 124 million tonnes, marking a double-digit growth of over 10 percent year-on-year. This sustained expansion highlights the sector’s capacity utilisation strength and reflects ongoing infrastructure spending and industrial activity across the country.
Finished steel production also showed a positive trend. December output was estimated at over 13 million tonnes, while cumulative finished steel production during the first nine months of FY26 reached approximately 118 million tonnes, recording healthy annual growth.
Consumption Signals Robust Domestic Demand
Domestic steel consumption continued to outperform production growth in December. Apparent steel consumption crossed 14 million tonnes, registering a strong double-digit increase compared to December 2024. On a cumulative basis, consumption during April–December FY26 rose by nearly 7 percent, underscoring sustained demand from infrastructure, construction, automotive, and capital goods sectors.
Export Growth and Import Compression
India’s steel trade balance improved significantly during December. Finished steel exports increased sharply, rising by more than one-third year-on-year, aided by competitive pricing and improved overseas demand. In contrast, finished steel imports declined sharply, falling by over 40 percent, reflecting improved domestic availability and reduced reliance on overseas supply.
This combination of rising exports and falling imports further strengthens the outlook for domestic steelmakers, particularly amid concerns around global overcapacity.
Industry Outlook
The December performance reinforces India’s position as one of the fastest-growing major steel producers globally. While short-term production growth may remain measured due to pricing pressures and global uncertainties, the underlying demand fundamentals remain intact.
With infrastructure investment, manufacturing expansion, and export competitiveness supporting the sector, India’s steel industry enters the final quarter of FY26 with a stable production outlook and improving trade dynamics.