[ NMDC August Iron Ore Production Surges 20.7% ]

India’s core sector output grew 4.8% YoY in August 2026, easing from 5% in July, while steel output rose 3.4%. Iron ore production increased 5.5%, while cement output rose 12.5% and electricity generation 11.6%. Core sector output grew 4.3% during April-August 2026, compared with 2.4% a year earlier. For the steel market, higher steel, iron ore and cement output indicates continued activity across steelmaking and construction-related sectors which could support steel demand in the near term. ICRA expects overall industrial output growth to ease to around 5%-6% in August from 6.7% in July, suggesting some moderation in near-term industrial activity.

NMDC, India's biggest iron ore miner, is working to lift its production to 60 MT in FY27 to keep pace with growing domestic steel demand, which would be about 20% higher YoY after output crossed 50 MT in FY26 through existing mines and NCL assets, and remains on track for 100 MT by 2030-31 in line with the 300 MT national steelmaking capacity target, with environmental clearances applied for and bids invited for mine infrastructure. It also plans to start commercial thermal coal production in Q3 FY27 and sell about 1 MT this year, with coking coal output expected from FY28, and aims to earn at least 20% of its revenue from minerals other than iron ore by 2030.

India’s domestic sponge iron market has reached its highest level in two years, with prices continuing to rise to mid-September. The recent increase has been driven mainly by higher input costs, particularly thermal coal, while improving buying interest and some restocking have also supported the move.