India’s steel sector maintained its growth trajectory in May 2026, recording year-on-year increases in production and consumption, supported by sustained demand from infrastructure, construction and manufacturing sectors.
According to data released by the Ministry of Steel, crude steel production reached 14.21 million tonnes in May, registering a growth of 2.9 per cent compared to the same month last year. Finished steel production rose by 7.7 per cent to 13.94 million tonnes, while finished steel consumption increased by 9 per cent to 14.33 million tonnes.
Hot metal production grew by 2 per cent during the month, while pig iron output stood at 0.77 million tonnes, recording a growth of 1.1 per cent year-on-year.
During the first two months of the financial year 2026-27, crude steel production reached 28.04 million tonnes, up 2.7 per cent over the corresponding period last year. Finished steel production rose by 6.4 per cent to 27.36 million tonnes, while consumption also increased by 8.7 per cent, reflecting continued strength in domestic demand.
On the trade front, steel imports stood at 0.69 million tonnes in May, a sharp increase of 62.5 per cent compared to the same month last year. Exports rose by 29.9 per cent to 0.51 million tonnes. During April-May 2026, imports reached 1.37 million tonnes and exports 0.98 million tonnes, making India a net importer of steel during the period.
The Ministry said India’s crude steelmaking capacity reached approximately 220 million tonnes per annum during FY 2025-26, keeping the industry on course to achieve the National Steel Policy target of 300 million tonnes per annum by 2030.
In a major capacity expansion move, Steel Authority of India Limited has approved the expansion of the Bhilai Steel Plant’s crude steel capacity from 6.8 million tonnes per annum to 10.2 million tonnes per annum. Meanwhile, JSW Steel has commenced construction of its integrated steel plant at Paradip in Odisha, with a planned capacity of 13.2 million tonnes per annum.
The Ministry also highlighted progress under its Green Steel Initiative. As of May 31, green steel certificates had been issued to 94 producers across 15 states. The certified products include TMT bars, coils, plates, wire rods and pipes, with a majority receiving the highest five-star rating.
Steel prices, however, witnessed a decline during May. Prices of TMT bars and rebars fell by around 1.3 per cent month-on-month, while hot-rolled coils and galvanised sheets registered marginal declines. Despite the monthly fall, TMT prices remained around 4.5 per cent higher than a year ago.
Input costs continued to rise during the month. Domestic iron ore prices increased following a price revision by NMDC Limited, while international coking coal prices rose by 2.8 per cent to 239 dollars per tonne. Global scrap prices also moved higher, adding to cost pressures for steel producers.
