India's Steel Sector Performance Report May 2026
The Ministry of Steel released comprehensive data showing India's steel sector recorded steady growth in May 2026. Crude steel production reached 14.1 million tonnes (Mt), representing a 1.9% year-on-year increase, while finished steel production grew more significantly by 6.8% to 13.8 Mt. For the April-May 2026 period, total crude steel production stood at 28.0 Mt, up 2.6% from the corresponding period last year.
Production Capacity and Distribution
India's total crude steelmaking capacity reached approximately 221.9 million tonnes per annum (Mtpa) as of May 2026. The top 7 producers, including SAIL, RINL, NSL, TSL Group, AM/NS, JSL(JSPL), and JSW Group, accounted for 15.4 Mt of crude steel production during April-May 2026 from their combined capacity of 117.4 Mt. The remaining producers contributed 12.6 Mt from their 104.5 Mt capacity. The public sector share stood at 13.9% of total production capacity but accounted for 15.7% of actual crude steel production.
Price Trends and Market Dynamics
Steel prices showed mixed trends across product categories. TMT (10 mm) prices declined 4.7% month-on-month to ₹60,068 per tonne in June 2026 but remained 4.4% higher year-on-year. HR Coil (2 mm) prices were relatively stable at ₹70,108 per tonne in June 2026, down 0.5% from May but up 11.2% year-on-year. CR Coil (0.63 mm) prices stood at ₹77,053 per tonne, down 1.1% monthly but up 11.4% annually. GP Sheet (0.63 mm) prices reached ₹86,505 per tonne, declining 2.8% from May but showing a substantial 15.8% year-on-year increase.
Trade Dynamics and Import-Export Position
India transitioned to a net importer of finished steel during April-May 2026, with imports surging 45% to 1.37 million tonnes valued at ₹13,301.2 crore, while exports grew 27.4% to 0.98 million tonnes valued at ₹7,801.2 crore. China emerged as the largest import source with 428.1 thousand tonnes (31.3% share), followed by Korea (361.1 thousand tonnes, 26.4%) and Japan (259.8 thousand tonnes, 19%). The UAE was the top export destination with 157.5 thousand tonnes (16.1% share), followed by Vietnam (115 thousand tonnes, 11.8%).
Specialized Steel Segments
Alloy steel production showed robust growth with output reaching 952.6 thousand tonnes in May 2026, up 28.2% year-on-year, while consumption grew 30.3% to 1,085.9 thousand tonnes. Stainless steel production increased modestly by 4.5% to 362.0 thousand tonnes, but consumption surged 55.7% to 482.5 thousand tonnes, driven by a 193.5% increase in imports to 105.4 thousand tonnes.
Raw Material Trends
Domestic raw material prices showed mixed movements with NMDC Iron Ore Baila Lump (65.5%, 10-40 mm) increasing 3.8% to ₹5,700 per tonne in June 2026, while MOIL Manganese Ore Lump declined 5.0% to ₹19,505 per tonne. Scrap (HMS II) prices decreased 4.4% to ₹40,665 per tonne. Mining activity showed 337 active iron ore leases as of March 2024, with 46 blocks auctioned from April 2024 to June 2026.
Corporate and Policy Initiatives
SAIL announced record FY2025-26 financial results with sales volume of 19.93 million tonnes and revenue of ₹110,810 crore, representing 11.4% year-on-year sales volume growth. The company's Bhilai Steel Plant received Environmental Product Declaration certification for its TMT Bars, and its 15 MW floating solar project generates approximately 34.25 million units of clean power annually. SAIL and NMDC are exploring coking coal asset acquisitions and nickel supplies in Russia following a May 2026 delegation visit, with both companies forming committees to assess potential opportunities for strengthening raw material security.
Economic Indicators
Supporting economic indicators showed the Nifty Metal Index averaged 13,010.4 in May 2026, down 3.2% month-on-month but up 36.5% year-on-year. The PMI Manufacturing Index improved to 55.0 in May 2026, up 0.5% monthly. The Baltic Dry Index showed significant strength, averaging 3,048.9 in May 2026, up 24.8% monthly and 115.0% year-on-year, indicating strong global shipping demand.