India’s steel industry continued to perform strongly in May 2026, with production and consumption registering healthy growth compared to the same period last year. Fresh data shows that steel demand remained robust, largely driven by continued activity in infrastructure, construction and manufacturing sectors.
Crude steel production stood at 14.21 million tonnes in May 2026, recording a growth of 2.9% compared to May last year. Hot metal production also increased by 2%, while pig iron production reached 0.77 million tonnes, growing by 1.1% year-on-year.
The biggest jump was seen in finished steel production, which touched 13.94 million tonnes, registering a growth of 7.7%. Steel consumption remained strong as well, reaching 14.33 million tonnes during the month, an increase of 9% over the previous year.
Strong demand continues in April-May period
The positive trend was visible in the first two months of the financial year as well. Between April and May 2026, India produced 28.04 million tonnes of crude steel, up 2.7% from the corresponding period last year.
Finished steel production during the two months reached 27.36 million tonnes, showing a growth of 6.4%. Consumption also rose sharply by 8.7% to 27.36 million tonnes.
Industry experts believe this growth is being supported by continued investments in infrastructure projects, construction activities and manufacturing expansion across the country.
Capacity expansion keeps industry on track
India’s steelmaking capacity has now reached around 220 million tonnes per annum (MTPA) during FY 2025-26. This keeps the country on course to achieve the National Steel Policy target of 300 MTPA by 2030.
Several major expansion projects are also underway. State-owned Steel Authority of India Limited (SAIL) has approved a major expansion of its Bhilai Steel Plant, increasing its crude steel capacity from 6.8 MTPA to 10.2 MTPA.
Meanwhile, JSW Steel has started construction of its large integrated steel plant at Paradip in Odisha. The project is being developed in phases and is planned to have a capacity of 13.2 MTPA.
Green steel initiative gains momentum
India’s push towards environmentally friendly steel production is also gathering pace. Under the Ministry of Steel’s Green Steel Initiative, green steel certificates had been issued to 94 producers across 15 states by the end of May 2026.
The certification covers products such as TMT bars, coils, plates, wire rods, and pipes. Officials noted that most certified products received the highest five-star rating, indicating growing acceptance of green steel practices among producers.
Steel prices ease, raw material costs rise
While steel demand remained strong, domestic steel prices softened during May. TMT and rebar prices fell by around 1.3% compared to April, although they were still about 4.5% higher than a year ago. Prices of flat steel products such as HR coils and GP sheets also saw a marginal decline.
At the same time, raw material costs continued to rise. NMDC increased domestic iron ore prices by ₹200 per tonne during the month. International coking coal prices rose by 2.8% to $239 per tonne, keeping pressure on production costs for steel manufacturers.
