India’s steel industry maintained strong momentum in May 2026, supported by rising demand from infrastructure projects, construction activities, manufacturing growth, and an increasingly active steel procurement market.

According to the latest industry data, crude steel production reached 14.21 million tonnes during the month, marking a 2.9% increase compared to May 2025. Hot metal production also recorded a 2% rise, while pig iron output grew by 1.1% to 0.77 million tonnes.

Finished steel production showed the strongest performance, climbing 7.7% year-on-year to 13.94 million tonnes. At the same time, steel consumption touched 14.33 million tonnes, reflecting a healthy 9% growth. This increase highlights the continued strength of steel procurement activities across sectors such as infrastructure, real estate, engineering, and manufacturing.

The positive trend was also visible during the first two months of FY 2026-27. Between April and May, India produced 28.04 million tonnes of crude steel, up 2.7% from the same period last year. Finished steel production reached 27.36 million tonnes, while steel consumption rose by 8.7%, indicating sustained demand and strong steel procurement requirements nationwide.

India’s steelmaking capacity has now expanded to around 220 million tonnes per annum, keeping the country on track to achieve the National Steel Policy target of 300 million tonnes by 2030. Major capacity expansion projects by SAIL and JSW Steel are expected to further strengthen domestic supply and support future steel procurement needs.

The industry is also making progress in sustainable manufacturing. Under the Ministry of Steel’s Green Steel Initiative, 94 producers across 15 states have received green steel certification, covering products such as TMT bars, coils, plates, wire rods, and pipes.

While steel demand remained robust, domestic steel prices softened slightly during May. However, rising iron ore and coking coal costs continued to put pressure on manufacturers, creating new challenges for steel producers and procurement professionals alike.