India's Steel Production Growth Continues

Steel Production in India - May 2026 Overview

Production and Consumption Data

• Raw Steel Production: 14.21 million tons, a 2.9% increase year-on-year.
• Hot Metal Production: Increased by 2.0%.
• Pig Iron Production: 0.77 million tons, a 1.1% increase.
• Finished Steel Production: 13.94 million tons, a 7.7% increase year-on-year.
• Finished Steel Consumption: 14.33 million tons, reflecting a 9.0% increase year-on-year.

Cumulative Production (April-May 2026)

• Raw Steel: 28.04 million tons, a 2.7% increase compared to the same period last year.
• Hot Metal: Production increased by 2.7%.
• Pig Iron: 1.50 million tons, a 0.2% increase.
• Finished Steel: 27.36 million tons, a 6.4% increase.
• Finished Steel Consumption: 27.36 million tons, an 8.7% increase driven by demand from construction, infrastructure, and manufacturing sectors.

Trade Dynamics

• Imports: 0.69 million tons (62.5% increase year-on-year).
• Exports: 0.51 million tons (29.9% increase year-on-year).
• Net Importer Status: India remained a net importer during April-May 2026, with total imports at 1.37 million tons and exports at 0.98 million tons.

Capacity Expansion and Investments

• Total Raw Steel Production Capacity: Approximately 220 million tons per annum (MTPA) for FY 2025-26.
• Target: Achieving 300 MTPA by 2030 as per the National Steel Policy.
• SAIL: Approved capacity increase at Bhilai Steel Plant from 6.8 MTPA to 10.2 MTPA.
• JSW Steel: Commenced construction of an integrated steel plant in Paradip, Odisha, with a planned capacity of 13.2 MTPA.

Green Steel Initiative

• Green Steel Certification: Issued to 94 producers in 15 states by May 31, 2026. Products include TMT bars, HR/CR coils, plates, wire rods, and pipes.
• Adoption Rate: High adoption among secondary and medium-sized steel producers, with many achieving the highest 5-star rating.

Steel Pricing Dynamics

• Domestic Steel Prices: Monthly decline observed across major product categories.
  • TMT/Rebar prices decreased by 1.3% month-on-month but showed a 4.5% annual increase.
• Price Trends: Stable steel prices fell slightly for HR coils and GP sheets by approximately 0.2%.

Raw Material Prices

• Iron Ore Prices: Increased by ₹200 per ton by NMDC in May 2026.
• Manganese Ore Production: 0.17 million tons, a 4% increase from the previous month, with a 4% price decrease.
• International Coking Coal Prices: Increased by 2.8% to $239 per ton, impacting input costs for integrated BF-BOF producers.

Economic Outlook

• Industry Position: The Indian steel industry is well-positioned for growth due to strong infrastructure investment and expanding manufacturing activities.
• Challenges: Anticipated pressure on producers' profit margins due to declining steel prices and rising raw material costs, despite favorable domestic demand fundamentals.

Conclusion

The Indian steel sector demonstrated robust growth in production and consumption in May 2026, with significant developments in capacity expansion and adherence to green initiatives. However, challenges remain regarding price fluctuations and raw material costs that could impact profitability in the near term.