Global crude steel output declined marginally by 0.3% to 157.9 million tonnes in May 2026, according to data released by the World Steel Association. The decline affected 70 reporting countries that account for nearly 98% of global steel production. The steepest decline was recorded in the Middle East, where crude steel production dropped 19.4% year-on-year to 3.9 million tonnes. Asia and Oceania, the world's largest steel-producing region, recorded production of 116.2 million tonnes in May, down 0.9% year-on-year. Output in the European Union (27) also slipped by 0.4% to 11.4 million tonnes, while Russia and other CIS countries, including Ukraine, fell 4.8% to 6.7 million tonnes.
India maintained its position as the world's second-largest steel producer with 14.1 million tonnes of crude steel production in May, registering a 1.9% year-on-year increase. On a cumulative basis, India's output during the January-May period rose 7.8% to 72.9 million tonnes, making it one of the fastest-growing major steel-producing nations. This performance helped India retain its global ranking despite the overall global decline and the mixed recovery trends across different regions.
China, the world's largest steel producer, reported a 2.7% decline in output to 84.4 million tonnes in May. The country's production during the first five months of 2026 fell 3.9% to 415.5 million tonnes, reflecting subdued domestic demand and continued efforts to rationalise capacity. This decline contrasts sharply with India's growth momentum and highlights the uneven recovery patterns across major producers.
The US posted the strongest growth among major regions, with production rising 15.6% to 10.1 million tonnes in May, while Africa produced 2.1 million tonnes of crude steel, marking a 10.3% increase. South America registered a 3.7% rise to 3.5 million tonnes. Other European countries outside the EU increased production by 4.9% to 3.8 million tonnes. North America emerged as the strongest performer with output increasing 15.6% to 10.1 million tonnes, while Africa also saw robust growth of 10.3%.
Global crude steel production during January-May 2026 stood at 773.1 million tonnes, down 1.5% from the corresponding period last year, underlining the uneven recovery in steel demand across regions. Current steel market dynamics show export billet quotations remaining stable with mill quotes generally above $470/mt and tradable prices at $465-467/mt. Steel mills are demonstrating strong willingness to hold prices firm due to cost considerations, making export billet orders difficult to close. The mixed performance across major producers and regions suggests that while some markets show strong growth, others continue to face challenges from subdued demand and capacity rationalisation efforts.
