India’s steel sector continued to demonstrate resilience in May 2026, supported by sustained demand from infrastructure, construction and manufacturing activities. According to the Ministry of Steel, crude steel production reached 14.21 million tonnes during the month, registering a year-on-year growth of 2.9%. Finished steel production increased by 7.7% to 13.94 million tonnes, while consumption rose by 9% to 14.33 million tonnes, reflecting strong domestic demand. Hot metal production grew by 2%, and pig iron output increased by 1.1% to 0.77 million tonnes. During the first two months of FY27, crude steel production stood at 28.04 million tonnes, up 2.7% year-on-year, while finished steel production and consumption rose by 6.4% and 8.7%, respectively. The performance highlights the sector’s continued expansion amid ongoing infrastructure development and industrial growth across the country.
On the trade front, steel imports increased by 62.5% year-on-year to 0.69 million tonnes in May, while exports rose by 29.9% to 0.51 million tonnes, making India a net steel importer during April-May 2026. The Ministry noted that India’s crude steelmaking capacity reached around 220 million tonnes per annum in FY26, keeping the industry on track to achieve the National Steel Policy target of 300 million tonnes per annum by 2030. Capacity expansion efforts gained momentum with SAIL approving the expansion of the Bhilai Steel Plant from 6.8 MTPA to 10.2 MTPA and JSW Steel commencing construction of its 13.2 MTPA integrated steel plant in Odisha. Progress under the Green Steel Initiative also continued, with 94 producers across 15 states receiving green steel certification, reinforcing the sector’s focus on sustainability and long-term growth.
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