New Delhi: India’s steel sector continued its growth trajectory in May 2026, supported by strong domestic demand, expanding production capacities, and sustained infrastructure-led consumption. According to provisional Joint Plant Committee (JPC) data, key production and consumption indicators registered positive year-on-year (YoY) growth despite emerging pressures from declining steel prices and rising raw material costs.
Crude steel production reached 14.21 million tonnes in May 2026, recording a growth of 2.9% YoY. Hot metal production increased by 2.0% YoY, while pig iron output stood at 0.77 million tonnes, up 1.1% from the corresponding month of the previous year. Finished steel production witnessed stronger growth, rising 7.7% YoY to 13.94 million tonnes. Domestic demand remained robust, with finished steel consumption reaching 14.33 million tonnes, reflecting a 9.0% YoY increase.
During April-May, crude steel production totalled 28.04 million tonnes, representing a 2.7% increase over 27.30 million tonnes produced during the corresponding period last year. Hot metal production also grew by 2.7% compared with the same period of the previous year. Pig iron production reached 1.50 million tonnes, marginally higher by 0.2%. Finished steel production increased by 6.4% to 27.36 million tonnes, while finished steel consumption also reached 27.36 million tonnes, registering an 8.7% increase. Demand growth continued to be driven by the construction, infrastructure, and manufacturing sectors.
India’s steel trade also expanded significantly during the month. Imports stood at 0.69 million tonnes in May 2026, marking a sharp 62.5% increase over 0.42 million tonnes recorded in May 2025. Exports reached 0.51 million tonnes, up 29.9% from 0.39 million tonnes a year earlier. During April-May, imports totalled 1.37 million tonnes while exports stood at 0.98 million tonnes, making India a net importer during the period. Compared with April–May 2025, imports rose by 45.0% from 0.94 million tonnes, while exports increased by 27.4% from 0.77 million tonnes.
Capacity expansion remained a key feature of the sector’s development. India’s total crude steelmaking capacity reached approximately 220 million tonnes per annum (MTPA) in FY 2025-26, keeping the industry on course to achieve the National Steel Policy target of 300 MTPA by 2030. In a major expansion initiative, SAIL approved the enhancement of the Bhilai Steel Plant’s crude steel capacity from 6.8 MTPA to 10.2 MTPA. Additionally, JSW Steel commenced construction of its integrated steel plant at Paradip, Odisha, in May 2026, with a planned phased capacity of 13.2 MTPA.
The Ministry of Steel’s Green Steel Initiative also gained momentum. As of 31 May, green steel certificates had been issued to 94 producers across 15 states. Certified products included TMT bars, HR and CR coils, plates, wire rods, and pipes, with most products achieving the highest five-star rating, indicating strong participation among secondary and mid-sized producers.
On the pricing front, domestic steel prices declined month-on-month across major product categories. TMT/Rebar prices fell by around 1.3% MoM, although they remained approximately 4.5% higher on a YoY basis, marking the first positive annual growth after several months. Flat steel products also weakened, with HR Coil and GP Sheet prices declining by around 0.2% MoM.
Meanwhile, raw material costs continued to rise. NMDC increased domestic iron ore prices by ₹200 per tonne during May. MOIL’s manganese ore production reached 0.17 million tonnes, up 4% month-on-month, while manganese ore prices eased by 4%. Globally, seaborne iron ore prices remained volatile. International coking coal prices increased by 2.8% month-on-month to $239 per tonne, maintaining elevated cost pressures for integrated BF-BOF producers. International scrap prices also moved higher, adding further cost burdens for electric-route steelmakers.