Steel Prices Rise 12.3% While Cement Remains Stable Under India’s Revised WPI Series

India’s industrial and construction sectors witnessed contrasting price trends in May 2026, according to the latest Wholesale Price Index (WPI) data released by the Department for Promotion of Industry and Internal Trade (DPIIT). The revised WPI series, which now uses 2022-23 as the base year, provides a broader and more accurate picture of industrial price movements across the country.

One of the key highlights from the latest data is the sharp rise in steel and metal prices. The Basic Metals category recorded a year-on-year inflation rate of 12.3 per cent in May 2026, compared to 10.59 per cent in April. This reflects continued demand from infrastructure, manufacturing and engineering sectors, which remain major consumers of steel products.

The Fabricated Metal Products segment also reported strong growth. Inflation in this category rose to 6.22 per cent during May, indicating sustained activity in sectors linked to industrial equipment, construction components and engineering products. Industry experts believe the increase reflects healthy project execution across infrastructure and manufacturing industries.

The mining sector also posted positive growth. Mineral prices increased by 4.91 per cent year-on-year, supported by rising demand for raw materials used in construction, metals production and industrial activities. The performance signals continued momentum in India’s infrastructure expansion and industrial development programmes.

In contrast, the category covering Other Non-Metallic Mineral Products, which includes cement, tiles, ceramics, glass and related construction materials, remained largely stable. Inflation in this segment stood at only 1.02 per cent during May 2026. The relatively modest increase suggests that cement and allied building material prices have not witnessed the same level of escalation seen in steel and metal products.

For the construction and real estate sectors, the data presents a mixed outlook. While stable cement prices may help control overall project costs, rising steel prices could increase expenditure on infrastructure, commercial and residential developments. Industry stakeholders will closely monitor future price trends as project activity continues to gather pace across the country.

The revised WPI data highlights the growing demand for industrial inputs while underlining the importance of maintaining price stability in key construction materials to support India’s infrastructure growth ambitions.

Source: PIB (https://tinyurl.com/yukryw5k)