- India remains a net importer of finished steel in May
- Strong recovery in domestic consumption after April slowdown
India’s crude steel production increased by 2.8% m-o-m to 14.213 million tonnes (mnt) in May 2026, according to provisional data released by the Joint Plant Committee (JPC) under the Ministry of Steel. On a y-o-y basis, crude steel output edged higher by 2.9%, reflecting steady production despite subdued market conditions.
India continued to remain a net importer of finished steel in May, with imports at 0.689 mnt, exceeding exports of 0.508 mnt.
Steel industry highlights in May
Steel production recovers; consumption rebounds strongly
India’s crude steel production rose 2.8% m-o-m in May, while finished steel production increased 3.8% to 13.937 mnt. The recovery follows maintenance-related production disruptions witnessed in April, with most integrated mills resuming normal operations during May.
The most notable improvement was seen in finished steel consumption, which surged 9.9% m-o-m to 14.328 mnt after falling sharply in April. On a y-o-y basis, consumption was also higher by 9%, indicating an improvement in domestic demand from infrastructure, construction, and manufacturing sectors, although overall market sentiment remained mixed.
Finished steel exports improve m-o-m and y-o-y
India’s finished steel exports rose 8.3% m-o-m to 0.508 mnt in May. Compared with the same month last year, exports increased 29.9%, supported by improved overseas demand and relatively competitive Indian steel prices in select export markets.
India’s HRC exports increased in May as shipments that had been delayed during March and April due to geopolitical tensions and disruptions along key shipping routes were gradually released. Uncertainty over logistics and vessel movements had slowed export dispatches during the earlier months, despite bookings being in place. As shipping corridors became relatively safer and logistics conditions improved after April, exporters were able to execute pending orders, resulting in a notable rise in outbound shipments during May. Growing trade restrictions on Chinese steel in several markets also created opportunities for Indian exporters, supporting higher shipment volumes during the month.
Finished steel imports remain elevated
Finished steel imports edged up 1.5% m-o-m to 0.689 mnt, while registering a sharp 62.5% y-o-y increase. Imports continued to outpace exports, keeping India a net importer of finished steel for another month.
Bulk hot-rolled coil (HRC) imports into India in May were around 423,925 t, an increase of 22% m-o-m from 348,901 t in April 2026, as per BigMint’s vessel line-up data.
India’s bulk HRC imports increased in May compared to both the previous month and the same period last year, driven by higher arrivals from key Asian suppliers, particularly China. While imports from South Korea slightly increased, volumes from Japan declined. The rise in imports was largely supported by demand from pipe and tube manufacturers serving export markets, amid strong pipeline project activity in the Middle East. Cargoes arriving at western ports were primarily linked to re-export-oriented manufacturing and long-term contractual arrangements.
Import bookings were further encouraged by competitive overseas prices in late-March and early-April and the reduction in safeguard duties on non-FTA steel imports, which improved the attractiveness of imported material.
April-May FY’27 performance
During April-May FY’27, India’s crude steel production stood at 28.043 mnt, up 2.7% from 27.303 mnt in the corresponding period last year. Finished steel production rose 6.4% to 27.363 mnt, while finished steel consumption increased 8.7% to 27.364 mnt.
Finished steel exports grew 27.6% to 0.977 mnt, whereas imports climbed 45.1% to 1.368 mnt, highlighting continued dependence on overseas supplies despite healthy domestic production growth.
Outlook
India’s steel market is likely to witness stable production in the coming months as integrated mills continue operating at normal capacity after the maintenance-related disruptions seen in April. Domestic steel demand is expected to remain supported by ongoing infrastructure spending and construction activity, although the pace of consumption growth may moderate with the onset of the monsoon.
On the trade front, imports are likely to remain elevated as competitively priced cargoes booked earlier continue to arrive, keeping India a net importer of finished steel. Export volumes may remain supported by improved shipping conditions and stronger demand in select overseas markets, but rising imports are expected to continue influencing domestic pricing and market competitiveness.
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