·
Crude
steel production reached 14.21
million tonnes (MT) in May 2026.
·
Production
increased 2.9%
year-on-year (YoY).
·
Hot
metal production grew 2.0%
YoY.
·
Pig
iron production stood at 0.77
MT, up 1.1%
YoY.
·
Finished
steel production reached 13.94
MT in May 2026.
·
Output
registered a strong 7.7%
YoY growth.
·
Finished
steel consumption rose to 14.33
MT.
·
Consumption
increased 9.0% YoY,
supported by:
o Construction activity.
o Infrastructure projects.
o Manufacturing sector demand.
·
Crude
steel production: 28.04 MT
(+2.7% CPLY).
·
Finished
steel production: 27.36 MT
(+6.4% CPLY).
·
Finished
steel consumption: 27.36
MT (+8.7% CPLY).
·
Steel
imports in May 2026 stood at 0.69
MT.
·
Imports
surged 62.5% YoY
compared with May 2025.
·
Steel
exports reached 0.51 MT
in May 2026.
·
Exports
grew 29.9% YoY.
·
During
April–May 2026:
o Imports: 1.37 MT
o Exports: 0.98 MT
·
India
remained a net importer despite export growth.
·
India's
crude steelmaking capacity reached approximately 220 million tonnes per annum (MTPA)
in FY 2025-26.
·
The
sector remains on track toward the 300
MTPA target by 2030 under the National Steel Policy.
·
SAIL
approved expansion of the Bhilai Steel Plant from 6.8 MTPA to 10.2 MTPA.
·
JSW Steel began construction of its integrated
steel plant at Paradip with a planned capacity of 13.2 MTPA.
·
Green
steel certificates were issued to 94
producers across 15 states as of May 31, 2026.
·
Certified
products include:
o TMT bars
o HR/CR coils
o Plates
o Wire rods
o Pipes
·
Most
certified products received the highest 5-star
rating.
·
Domestic
steel prices declined month-on-month in May 2026.
·
TMT/Rebar
prices fell approximately 1.3%
MoM.
·
HR
Coil and GP Sheet prices declined around 0.2%
MoM each.
·
Despite
monthly declines, TMT/Rebar prices were still 4.5% higher YoY.
·
This
marks the first positive annual price growth after several months of weakness.
·
NMDC
increased domestic iron ore prices by ₹200
per tonne during May.
·
International
coking coal prices rose 2.8%
MoM to US$239/tonne.
·
Global
scrap prices also increased.
·
MOIL
Limited produced 0.17 MT of manganese ore
in May 2026.
·
Production
increased 4% MoM.
·
Manganese
ore prices declined 4%
during the month.
·
Falling
steel prices and rising raw material costs are compressing profit margins.
·
Both
integrated steel producers and electric-route steelmakers face higher input
costs.
·
Strong
infrastructure spending and manufacturing growth are expected to sustain steel
demand.
·
Capacity
expansion and green steel initiatives are strengthening long-term growth
prospects.
·
However,
near-term profitability may remain under pressure due to rising input costs and
softer steel prices.
India's steel sector
maintained strong growth in May 2026, with robust increases in production,
consumption, and capacity expansion. While infrastructure and manufacturing
demand continue to support the industry, rising raw material costs and
declining steel prices are likely to weigh on producer margins in the short
term.
India’s steel sector
sustained its growth trajectory in May 2026, recording year-on-year gains across
key production and consumption indicators.
Production and
Demand Trend
Crude steel production
reached 14.21 million tonnes in May 2026, up 2.9% year-on-year (YoY). Hot metal
production grew 2.0% YoY, while pig iron output (0.77 million tonnes) posted a growth
of 1.1% YoY. Finished steel production reached 13.94 million tonnes in May 2026,
up 7.7% YoY. Finished steel consumption in May 2026 was 14.33 million tonnes, registering
growth of 9.0% YoY.
Crude steel production
was 28.04 million tonnes during Apr-May 2026, up 2.7% over the corresponding period
last year (CPLY), compared with 27.30 million tonnes in April–May 2025. Hot metal
production grew 2.7% CPLY, while pig iron output (1.50 million tonnes) posted a
growth of 0.2% CPLY. Finished steel production reached 27.36 million tonnes, up
6.4% CPLY. Finished steel consumption in April–May 2026 was 27.36 million tonnes,
registering growth of 8.7% CPLY, driven by sustained demand from construction, infrastructure,
and manufacturing end-use segments.
Trade Dynamics
On the trade front,
imports stood at 0.69 million tonnes and exports at 0.51 million tonnes in May 2026,
registering year-on-year growth of 62.5% and 29.9% over May 2025 levels of 0.42
million tonnes and 0.39 million tonnes respectively.
Imports were 1.37
million tonnes and exports at 0.98 million tonnes during Apr–May 2026, making India
a net importer during the period. Compared with Apr–May 2025, when imports were
0.94 million tonnes and exports were 0.77 million tonnes, imports and exports grew
by 45.0% and 27.4%, respectively, during Apr–May 2026.
Capacity Expansion
and Investment Momentum
India's total crude
steelmaking capacity reached at approximately 220 MTPA in FY 2025–26, keeping the
industry on track to achieve the National Steel Policy target of 300 MTPA by 2030.
In a significant step towards the target, SAIL has approved the expansion of its
Bhilai Steel Plant from present crude steel capacity of
6.8 MTPA to 10.2 MTPA. Further, JSW Steel commenced construction of its integrated
steel plant at Paradip, Odisha in May 2026 — a phased development with a planned
capacity of 13.2 MTPA.
Green Steel Initiatives
Under the Ministry
of Steel’s Green Steel Initiative, as on 31st May 2026, green steel certificates
had been issued to 94 producers across 15 states, spanning products including TMT
Bars, HR/CR Coils, Plates, Wire Rods, and Pipes, with a majority of certified products
achieving the highest 5-star rating — reflecting strong uptake of the initiative
across secondary and mid-size steel producers.
Steel Price Scenario
Domestic steel
prices decreased month-on-month (MoM) in May 2026 across all major product categories.
TMT/Rebar prices declined ~1.3% MoM, though they still registered a ~4.5% YoY gain
— marking the first positive YoY reading after several months of weakness. Flat
steel prices also declined, with HR Coil and GP Sheet prices both falling by approximately
0.2% MoM.
Raw Material Overview
Raw material prices
strengthened further in May 2026 compared to April 2026. NMDC increased domestic
iron ore prices by ₹200 per tonne during the month. MOIL's manganese ore production
in May 2026 was 0.17 million tonnes, up 4% month-on-month, while its manganese ore
prices eased by 4% during the month.
Global seaborne
iron ore prices remained volatile during May 2026. International coking coal costs
edged up 2.8% further month-on-month to $239/tonne, sustaining elevated input cost
pressures for integrated BF-BOF producers heading into Q2 FY 2026–27. International
scrap prices also moved higher during the month, adding to input cost pressures
for the electric route steelmakers.
Outlook
The Indian steel
industry is well-positioned to sustain its growth trajectory, underpinned by robust
infrastructure spending and expanding manufacturing activity. However, weakening
steel prices, coupled with rising raw material costs, are expected to put pressure
on producer margins in the near term, even as domestic demand fundamentals remain
supportive.
Source: Provisional JPC data for
May 2026.