India’s Steel Sector Shows Robust Growth in May 2026
India’s steel industry is on a growth roll as it showcased impressive production and consumption figures in May 2026. The sector recorded a 2.9% year-on-year increase in crude steel production, hitting a total of 14.21 million tonnes. With strong demand fueling production, finished steel production reached 13.94 million tonnes, marking a significant 7.7% YoY growth. Finished steel consumption also rose to 14.33 million tonnes, reflecting a robust 9.0% increase year-on-year.
From April to May 2026, total crude steel production was 28.04 million tonnes, up 2.7% from the same period last year. This positive trend also extended to hot metal production, which increased by 2.7%, and pig iron output, which saw a 0.2% increase, reaching 1.50 million tonnes. Finished steel production during this timeframe reached 27.36 million tonnes, translating to a 6.4% climb over the previous year, driven by strong demand in construction, infrastructure, and manufacturing sectors.
Trade Dynamics
On the international trade front, May 2026 witnessed a rise in imports and exports. Imports stood at 0.69 million tonnes, up 62.5% from May 2025, while exports increased by 29.9%, reaching 0.51 million tonnes. For the April-May 2026 period, imports totaled 1.37 million tonnes and exports were at 0.98 million tonnes, resulting in India being a net importer for the time being.
Capacity Expansion and Investment Momentum
The total crude steelmaking capacity in India hit approximately 220 million tonnes per annum (MTPA) in FY 2025–26, moving towards the National Steel Policy’s goal of 300 MTPA by 2030. Key developments include SAIL’s approval to expand Bhilai Steel Plant’s capacity from 6.8 MTPA to 10.2 MTPA and JSW Steel’s initiation of its integrated steel plant in Paradip, Odisha, with a planned capacity of 13.2 MTPA.
Green Steel Initiatives
In a significant move towards sustainability, the Ministry of Steel’s Green Steel Initiative has garnered attention, with 94 producers across 15 states receiving green steel certificates by the end of May 2026. The majority of these certified products achieved the highest 5-star rating, indicating a strong commitment to eco-friendly practices among secondary and mid-sized steel producers.
Steel Price Scenario
May 2026 also saw a decline in domestic steel prices across major products. TMT and Rebar prices fell approximately 1.3% month-on-month, though they still recorded a 4.5% increase year-on-year, signaling a recovery trend after months of decline. Flat steel prices showed a similar downward trajectory, with HR Coil and GP Sheet prices dropping by about 0.2% month-on-month.
Raw Material Overview
In terms of raw materials, prices remained stable in May 2026. NMDC raised domestic iron ore prices by ₹200 per tonne, while MOIL reported a 4% increase in manganese ore production, reaching 0.17 million tonnes. However, manganese ore prices decreased by 4% during the same period.
Outlook
The outlook for the Indian steel industry appears optimistic, supported by strong infrastructure investment and growing manufacturing activities. Nonetheless, producers may face margin pressures due to falling steel prices and rising raw material costs, despite the underlying strength in domestic demand fundamentals.
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