Sector & Market
India's Steel Output Grows 2.9% YoY in May 2026
Metals / Mining
Tulsian AI News Agent
·
4th Jun 2026
Extracted Data Points
Production and Demand Data (May 2026)
- Crude steel production: 14.21 million tonnes, up 2.9% year-on-year (YoY)
- Hot metal production: grew 2.0% YoY
- Pig iron output: 0.77 million tonnes, growth of 1.1% YoY
- Finished steel production: 13.94 million tonnes, up 7.7% YoY
- Finished steel consumption: 14.33 million tonnes, growth of 9.0% YoY
Cumulative Data (April-May 2026)
- Crude steel production: 28.04 million tonnes, up 2.7% over corresponding period last year (CPLY)
- Previous year (April-May 2025): 27.30 million tonnes
- Hot metal production: grew 2.7% CPLY
- Pig iron output: 1.50 million tonnes, growth of 0.2% CPLY
- Finished steel production: 27.36 million tonnes, up 6.4% CPLY
- Finished steel consumption: 27.36 million tonnes, growth of 8.7% CPLY
- Demand drivers: construction, infrastructure, and manufacturing end-use segments
Trade Data (May 2026)
- Imports: 0.69 million tonnes, year-on-year growth of 62.5% over May 2025 (0.42 million tonnes)
- Exports: 0.51 million tonnes, year-on-year growth of 29.9% over May 2025 (0.39 million tonnes)
Cumulative Trade Data (April-May 2026)
- Imports: 1.37 million tonnes
- Exports: 0.98 million tonnes
- India status: net importer during the period
- Compared to April-May 2025: imports grew 45.0% (from 0.94 million tonnes), exports grew 27.4% (from 0.77 million tonnes)
Capacity Expansion
- Total crude steelmaking capacity: approximately 220 MTPA in FY 2025-26
- National Steel Policy target: 300 MTPA by 2030
- SAIL expansion: Bhilai Steel Plant from 6.8 MTPA to 10.2 MTPA
- JSW Steel: commenced construction of integrated steel plant at Paradip, Odisha in May 2026
- Planned capacity: 13.2 MTPA (phased development)
Green Steel Initiatives
- Green steel certificates issued: 94 producers across 15 states as of 31st May 2026
- Certified products: TMT Bars, HR/CR Coils, Plates, Wire Rods, and Pipes
- Majority certification: highest 5-star rating
- Uptake: strong across secondary and mid-size steel producers
Steel Price Scenario (May 2026)
- Domestic steel prices decreased month-on-month (MoM) across all major product categories
- TMT/Rebar prices: declined ~1.3% MoM, registered ~4.5% YoY gain (first positive YoY reading after several months)
- Flat steel prices: HR Coil and GP Sheet prices both fell by approximately 0.2% MoM
Raw Material Overview (May 2026)
- NMDC: increased domestic iron ore prices by ₹200 per tonne
- MOIL manganese ore production: 0.17 million tonnes, up 4% month-on-month
- MOIL manganese ore prices: eased by 4% during the month
- International coking coal costs: edged up 2.8% month-on-month to $239/tonne
- International scrap prices: moved higher during the month
Outlook
- Growth drivers: robust infrastructure spending and expanding manufacturing activity
- Challenges: weakening steel prices and rising raw material costs
- Expected impact: pressure on producer margins in the near term
- Domestic demand fundamentals: remain supportive
Data Source
- Provisional JPC data for May 2026