India Steel Consumption Rises 9% In May On Strong Demand

New Delhi, Jun 5 (KNN) India's steel sector sustained its growth trajectory in May 2026, recording year-on-year (YoY) gains across key production and consumption metrics, according to provisional data released by the Ministry of Steel on Thursday.

Production and Consumption

Crude steel production rose 2.9 per cent YoY to 14.21 million tonnes in May 2026, while finished steel production climbed 7.7 per cent to 13.94 million tonnes. 

Finished steel consumption grew at a stronger 9 per cent to 14.33 million tonnes, driven by sustained demand from construction, infrastructure, and manufacturing sectors.

For the April–May 2026 period, crude steel production stood at 28.04 million tonnes, up 2.7 per cent over the same period last year, while finished steel consumption reached 27.36 million tonnes — up 8.7 per cent — reflecting broad-based demand momentum.

Trade: India Remains a Net Importer

On the trade front, steel imports surged 62.5 per cent YoY to 0.69 million tonnes in May 2026, while exports grew 29.9 per cent to 0.51 million tonnes. 

For the April–May period cumulatively, imports stood at 1.37 million tonnes against exports of 0.98 million tonnes, making India a net importer during the period. Compared with April–May 2025, imports grew 45 per cent and exports 27.4 per cent.

Capacity Expansion on Track

India's total crude steelmaking capacity reached approximately 220 MTPA in FY2025–26, keeping the industry on course for the National Steel Policy target of 300 MTPA by 2030. 

Two significant capacity additions are underway — SAIL has approved the expansion of its Bhilai Steel Plant from 6.8 MTPA to 10.2 MTPA, and JSW Steel commenced construction of an integrated plant at Paradip, Odisha in May 2026, with a planned capacity of 13.2 MTPA.

Green Steel Momentum

Under the Ministry of Steel's Green Steel Initiative, 94 producers across 15 states have been issued green steel certificates as of May 31, 2026, covering products including TMT bars, HR/CR coils, plates, wire rods, and pipes. 

Prices and Input Costs

Domestic steel prices declined month-on-month across all major product categories in May 2026. 

TMT and rebar prices fell approximately 1.3 per cent month-on-month, though they still recorded a 4.5 per cent YoY gain — the first positive YoY reading after several months of weakness. Flat steel prices, including HR coil and GP sheet, also edged down by approximately 0.2 per cent month-on-month.

On the input cost side, NMDC raised domestic iron ore prices by Rs 200 per tonne during the month. 

International coking coal costs edged up 2.8 per cent month-on-month to USD 239 per tonne, sustaining cost pressure for integrated blast furnace producers. International scrap prices also moved higher, adding to input cost pressures for electric route steelmakers.

(KNN Bureau)