India's steel industry maintained a healthy growth momentum in May 2026, supported by robust domestic demand from infrastructure, construction, and manufacturing sectors.
Production and Consumption Remain Strong
Crude steel production rose 2.9% year-on-year (YoY) to 14.21 million tonnes in May 2026, while finished steel production increased 7.7% YoY to 13.94 million tonnes. Finished steel consumption grew at an even faster pace, rising 9% YoY to 14.33 million tonnes, reflecting sustained demand across key sectors.
During April-May 2026, crude steel production increased 2.7% to 28.04 million tonnes, while finished steel production and consumption rose 6.4% and 8.7%, respectively, compared with the corresponding period last year.
Imports and Exports Rise; India Remains Net Importer
Steel imports surged 62.5% YoY to 0.69 million tonnes in May, while exports increased 29.9% to 0.51 million tonnes. For the April-May period, imports climbed 45% to 1.37 million tonnes and exports rose 27.4% to 0.98 million tonnes, making India a net importer during the period.
Capacity Expansion Gains Momentum
India's crude steelmaking capacity reached approximately 220 million tonnes per annum (MTPA) in FY26, keeping the industry on course to achieve the National Steel Policy target of 300 MTPA by 2030.
Key expansion initiatives include:
Steel Authority of India Limited (SAIL) approving the expansion of its Bhilai Steel Plant capacity from 6.8 MTPA to 10.2 MTPA.
JSW Steel commencing construction of its integrated steel plant at Paradip, Odisha, with a planned capacity of 13.2 MTPA.
Green Steel Adoption Accelerates
Under the Ministry of Steel's Green Steel Initiative, 94 steel producers across 15 states had received green steel certifications as of May 31, 2026. A majority of the certified products achieved the highest five-star rating, highlighting growing industry adoption of sustainable manufacturing practices.
Steel Prices Ease, Raw Material Costs Rise
Domestic steel prices softened during May 2026, with TMT/Rebar prices declining around 1.3% month-on-month, while hot-rolled coil and galvanized sheet prices slipped approximately 0.2%.
However, raw material costs continued to increase. NMDC Limited raised iron ore prices by Rs 200 per tonne during the month, while international coking coal prices climbed 2.8% to around $239 per tonne. Rising global scrap prices also added to cost pressures for steelmakers.
Despite softer steel prices, strong domestic demand, ongoing capacity additions, and increasing adoption of green steel technologies continue to support the long-term growth outlook for India's steel sector.