India's crude steel production reaches 14.21 million tonnes in May, up 2.9 pc: Govt
New Delhi, June 4
India's steel sector sustained its growth trajectory in May, as crude steel production reached 14.21 million tonnes, up 2.9 per cent year-on-year, the government said on Thursday.
Hot metal production grew 2.0 per cent, while pig iron output (0.77 million tonnes) posted a growth of 1.1 per cent.
Finished steel production reached 13.94 million tonnes in May, up 7.7 per cent. Finished steel consumption in May was 14.33 million tonnes, registering growth of 9.0 per cent YoY.
According to the steel ministry, crude steel production was 28.04 million tonnes during April-May, up 2.7 per cent over the corresponding period last year (CPLY), compared with 27.30 million tonnes in April-May 2025.
Hot metal production grew 2.7 per cent CPLY, while pig iron output (1.50 million tonnes) posted a growth of 0.2 per cent CPLY.
Moreover, finished steel production reached 27.36 million tonnes, up 6.4 per cent CPLY. Finished steel consumption in April-May 2026 was 27.36 million tonnes, registering growth of 8.7 per cent CPLY, driven by sustained demand from construction, infrastructure, and manufacturing end-use segments, said the ministry statement.
Steel imports stood at 0.69 million tonnes and exports at 0.51 million tonnes in May, registering year-on-year growth of 62.5 per cent and 29.9 per cent over May 2025 levels of 0.42 million tonnes and 0.39 million tonnes, respectively.
Imports were 1.37 million tonnes and exports at 0.98 million tonnes during April-May 2026, making India a net importer during the period.
India's total crude steelmaking capacity reached at approximately 220 MTPA in FY2025-26, keeping the industry on track to achieve the National Steel Policy target of 300 MTPA by 2030.
SAIL has approved the expansion of its Bhilai Steel Plant from the present crude steel capacity of 6.8 MTPA to 10.2 MTPA.
Further, JSW Steel commenced construction of its integrated steel plant at Paradip, Odisha in May 2026 - a phased development with a planned capacity of 13.2 MTPA.
Under the 'Green Steel Initiative', green steel certificates had been issued to 94 producers across 15 states (as on May 31, 2026), with a majority of certified products achieving the highest 5-star rating - reflecting strong uptake of the initiative across secondary and mid-size steel producers.
Raw material prices strengthened further in May 2026 compared to April 2026.
— IANS
Reader Comments
The Green Steel Initiative with 5-star ratings for most certified products is impressive! Finally some concrete steps towards sustainable manufacturing. Happy to see even smaller producers are adopting it. India can become a global leader in green steel if we keep this momentum. 🌿🏭
Good growth numbers overall. As a Canadian observing India's industrial progress, impressed by the expansion plans at Bhilai and JSW's Paradip project. The consumption growth of 8.7% suggests strong economic momentum. However, the import surge needs monitoring — protectionist measures might be needed if this continues.
The 2.9% production growth is decent but not spectacular. What concerns me is the raw material price strengthening — will hit downstream industries badly. Also, hope the expansion at Bhilai and Paradip doesn't lead to overcapacity like in China. Need demand-side push through housing and infrastructure equally. 🤔
The 9% consumption growth is the real story here! Means construction and manufacturing are actually doing well on ground. But being net importer despite having 220 MTPA capacity is worrisome — are we producing the right grades? Need more value-added products, not just crude steel. 📈🏗️
Interesting to see India's steel sector dynamics. The 5-star green steel certification is an innovative approach. From a global supply chain perspective, India's growing capacity could help reduce dependence on Chinese steel in the region. However, the import spike suggests domestic quality/price gaps still exist. Worth watching.
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