India’s steel sector maintained its growth momentum in May 2026. Key indicators related to production and consumption recorded year-on-year growth, reflecting strong demand across the country’s construction, infrastructure, and manufacturing sectors.
Growth in Crude and Finished Steel Production
In May 2026, crude steel production stood at 14.21 million tonnes—a 2.9% increase compared to the same period in the previous year. During this same period, hot metal production recorded a 2.0% increase, while pig iron production reached 0.77 million tonnes, up by 1.1%. Finished steel production reached 13.94 million tonnes in May 2026, marking a 7.7% increase on an annual basis. Meanwhile, finished steel consumption stood at 14.33 million tonnes, registering a notable increase of 9.0%.
Strong Performance in the April-May Period
During the April-May 2026 period, crude steel production totaled 28.04 million tonnes—2.7% higher than the 27.30 million tonnes produced during the corresponding period of the previous year. During this time, finished steel production reached 27.36 million tonnes, recording a growth of 6.4%. Finished steel consumption also stood at 27.36 million tonnes, up 8.7% on an annual basis. According to industry experts, sustained demand from the construction, infrastructure, and manufacturing sectors is the primary driver behind this growth.
Increase in Both Imports and Exports
On the trade front, steel imports in May 2026 stood at 0.69 million tonnes, while exports reached 0.51 million tonnes. This represents an increase of 62.5% and 29.9%, respectively, compared to May 2025. During April–May 2026, imports stood at 1.37 million tonnes, while exports amounted to 0.98 million tonnes. During this period, India remained a net importer. Compared to the corresponding period of the previous year, imports recorded a growth of 45.0%, and exports saw an increase of 27.4%.
Industry Progressing Towards 300 MTPA Target
In the financial year 2025–26, India’s total crude steel production capacity reached approximately 220 million tonnes per annum (MTPA). This advancement positions the industry to move closer to the target of achieving a capacity of 300 MTPA by 2030, as envisaged under the National Steel Policy. In this direction, the Steel Authority of India Limited (SAIL) has approved the expansion of its Bhilai Steel Plant’s capacity from 6.8 MTPA to 10.2 MTPA. Meanwhile, in May 2026, JSW Steel commenced the construction of an integrated steel plant with a capacity of 13.2 MTPA at Paradip, Odisha.
Boost for Green Steel Initiative
Under the Ministry of Steel’s Green Steel initiative, Green Steel Certificates had been issued to 94 producers across 15 states as of May 31, 2026. These include products such as TMT bars, HR/CR coils, plates, wire rods, and pipes. The majority of the certified products received the highest 5-star rating, indicating that this initiative is gaining widespread acceptance among medium and secondary steel producers.
Decline in Domestic Steel Prices
During May 2026, domestic steel prices recorded a month-on-month decline across most major categories. Prices for TMT bars and rebars fell by approximately 1.3%, although they maintained an increase of around 4.5% on a year-on-year basis. Prices for HR coils and GP sheets also registered a monthly decline of approximately 0.2%. After several months of weakness, the positive year-on-year growth in TMT prices is being viewed as a sign of relief for the industry.
Pressure from Rising Raw Material Costs
Raw material prices continued to firm up in May 2026. NMDC Limited hiked domestic iron ore prices by ₹200 per tonne. Meanwhile, MOIL Limited’s manganese ore production stood at 0.17 million tonnes—a 4% increase compared to the previous month. In the international market, coking coal prices rose by 2.8% to reach $239 per tonne. Furthermore, global scrap prices have also increased, raising concerns that steel producers’ costs are likely to rise.
Growth Prospects Remain Intact Amidst Strong Demand
Experts believe that the Indian steel industry’s growth momentum is likely to be sustained, driven by infrastructure investments and the expansion of manufacturing activities. However, profit margins for producers are expected to remain under pressure in the near term due to softening steel prices and rising raw material costs. Despite this, the strong fundamentals of domestic demand continue to serve as positive indicators for the industry.
