India’s steel sector continued to grow in May 2026, with crude steel production rising 2.9% year-on-year to 14.21 million tonnes, according to provisional Joint Plant Committee data released by the Ministry of Steel.
Finished steel production stood at 13.94 million tonnes during the month, marking a 7.7% year-on-year increase.
Finished steel consumption rose faster at 9% year-on-year to 14.33 million tonnes, supported by demand from construction, infrastructure and manufacturing segments.
During April-May 2026, crude steel production reached 28.04 million tonnes, compared with 27.30 million tonnes in the same period last year, registering a growth of 2.7%.
Finished steel production during the two-month period stood at 27.36 million tonnes, up 6.4% over the corresponding period last year. Finished steel consumption also stood at 27.36 million tonnes, recording 8.7% growth.
On the trade front, India remained a net importer of steel during April-May 2026.
Imports stood at 1.37 million tonnes, while exports were 0.98 million tonnes during the period.
In May alone, imports stood at 0.69 million tonnes and exports at 0.51 million tonnes. Imports grew 62.5% year-on-year from 0.42 million tonnes in May 2025, while exports increased 29.9% from 0.39 million tonnes.
India’s crude steelmaking capacity reached around 220 million tonnes per annum in FY 2025-26.
The ministry said the industry remains on track to achieve the National Steel Policy target of 300 million tonnes per annum by 2030.
Capacity expansion also gathered momentum, with SAIL approving expansion of its Bhilai Steel Plant from 6.8 million tonnes per annum to 10.2 million tonnes per annum.
JSW Steel also began construction of its integrated steel plant at Paradip in Odisha in May 2026, with a planned capacity of 13.2 million tonnes per annum.
Under the Green Steel Initiative, green steel certificates had been issued to 94 producers across 15 states as of 31 May 2026.
Certified products include TMT bars, HR and CR coils, plates, wire rods and pipes, with most certified products receiving the highest 5-star rating.
Domestic steel prices, however, declined month-on-month in May across major product categories.
TMT and rebar prices fell around 1.3%, while HR coil and GP sheet prices declined by nearly 0.2%.
Raw material prices strengthened during the month. NMDC raised domestic iron ore prices by ₹200 per tonne, while international coking coal costs rose 2.8% month-on-month to $239 per tonne, adding pressure on integrated steel producers.
International scrap prices also increased, affecting electric route steelmakers.
The ministry said the industry remains supported by infrastructure spending and manufacturing activity, but weaker steel prices and rising raw material costs are expected to put pressure on producer margins in the near term.
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