India recorded the highest increase in crude steel output among major steel-producing countries in March 2026, with production rising by 1.3 million tonnes or 9.4% year-on-year, according to the Indian Steel Association’s Monthly Steel Update for May 2026, citing Worldsteel data. The United States registered a 5.2% increase during the same period.

In contrast, the Middle East region recorded a sharp contraction in output, declining by 1.8 million tonnes or 33.5% year-on-year, as activities remained disrupted due to ongoing conflict in the region.

Globally, crude steel production across 69 countries stood at 159.9 million tonnes in March 2026, down 4.2% year-on-year from 166.9 million tonnes in March 2025. In absolute terms, global crude steel production declined by 7 million tonnes during the period.

Daily output trends across regions

In terms of daily output in March 2026, China registered the highest growth of 3.3% over the previous month. South America recorded a 3.2% increase, followed by South Korea at 2.4% and the EU-28 at 2.1%. Daily output declined forthe Middle East by 14.7%, India by 1.6%, Japan by 2.2%, and the United States by 2.7%, with the report attributing India’s decline to likely disruptions in fuel supply.

Region-wise, Asia excluding the Middle East produced 118.9 million tonnes of crude steel in March 2026, down 3.9% year-on-year. China’s output stood at 87 million tonnes, declining 6.2% year-on-year, while Japan produced 6.9 million tonnes, down 4.1%. South Korea produced 5.4 million tonnes, up 1.5%, while Vietnam’s output increased 5.7% to 2.2 million tonnes.

The EU-28 produced 11.6 million tonnes of crude steel in March 2026, declining 4.7% year-on-year, while North America produced 9.5 million tonnes, up 3.5%. South America’s production remained broadly flat year-on-year at 3.6 million tonnes, while Africa’s output rose 11.6% to 2.2 million tonnes.

India's production and consumption grow in FY2026

Against this backdrop, India’s steel industry registered growth in production, consumption, and exports during FY2025-26 (April 1, 2025-March 31, 2026). India’s crude steel production increased to 169.2 million tonnes in 2025-26 from 152.2 million tonnes in the previous fiscal, registering an 11.2% year-on-year increase. Crude steel output in March 2026 stood at 15.3 million tonnes, up 9.4% over March 2025.

Finished steel production grew by 10.3% year-on-year to 161.7 million tonnes in 2025-26, compared to 146.7 million tonnes in the previous fiscal. The report stated that this growth was driven by higher production of value-added products such as alloy and stainless steel, which increased 24% year-on-year to 14.15 million tonnes.

Finished steel consumption stood at 164.2 million tonnes during 2025-26, up 7.9% from 152.1 million tonnes in the previous fiscal. Consumption of alloy and stainless steel rose 15.9% year-on-year, while non-alloy steel consumption increased 7.2%.

The report noted that India’s steel production and demand were “steadily moving towards alloy and stainless products”, while demand for non-alloy steel remained healthy due to infrastructure and construction activity.

Net exporter of finished steel

India also turned into a net exporter of finished steel by a slight margin during 2025-26, with exports at 6.6 million tonnes compared to imports of 6.5 million tonnes.

Imports of finished steel declined from 9.6 million tonnes in 2024-25 to 6.5 million tonnes in 2025-26, marking a drop of nearly 32%. Non-alloy steel imports fell 33%, while alloy and stainless steel imports declined 28.2%.

According to the import-export update, total imports of iron and steel, including semis and finished steel, stood at 8.23 million tonnes in 2025-26, nearly 22% lower than 10.53 million tonnes in the previous fiscal.

Country-wise import data showed that the share of imports from South Korea increased from 29% in 2024-25 to 35% in 2025-26, while China’s share declined from 27% to 24%.

Total exports of iron and steel stood at 8.3 million tonnes in 2025-26, increasing 32% over 6.3 million tonnes in 2024-25. Finished steel exports increased nearly 36% year-on-year from 4.9 million tonnes to 6.6 million tonnes.

Input costs and supply concerns remain

The monthly update stated that rising exports alongside declining imports reflected “strong domestic momentum” for the steel sector, while also highlighting the possibility of a supply overhang in the near term due to relatively higher production growth compared to consumption growth.

The report also noted that disruptions in sourcing key inputs such as LNG, limestone, and coking coal had affected production in the recent past, while rising input costs and geopolitical frictions in the Middle East could create near-term uncertainty around steel demand and margins over the coming weeks and months.