Metal Prices Shine Brighter, Rising Input Costs Emerge As The Biggest Hurdle: Report

New Delhi: Metal prices strengthened across major segments in August, signalling an improvement in the sector, but rising input costs could challenge the sustainability of the recovery, according to a Centrum report.

The report said price momentum improved despite mixed demand conditions, making raw material costs a crucial factor to watch in the coming months.

Steel Prices Recover

Global hot-rolled coil (HRC) prices strengthened in the US and Europe, rising around 3% month-on-month in both markets. China's export HRC prices remained broadly unchanged.

In India, rebar prices staged a sharper recovery, jumping nearly 10% month-on-month and 12% year-on-year after declining substantially during the previous three months.

Domestic HRC prices increased around 2% from the previous month and were 19% higher year-on-year.

Centrum attributed the rebar recovery to planned maintenance shutdowns at integrated steel plants, tighter supplies, lower inventories, suspension of fresh bookings and healthy demand.

HRC prices also received support from controlled dispatches, limited availability and stronger Middle East demand.

Input Costs Send Mixed Signals

Steelmaking raw material prices moved in different directions during August.

Australian iron ore prices declined around 2% month-on-month and 3% year-on-year. NMDC also announced its second consecutive price reduction of 2026 during August.

However, the miner raised lump ore prices by ₹150 per tonne in September, while fines prices remained unchanged.

India Steel Output Remains Resilient

Global crude steel production fell around 4% month-on-month to 149.2 million tonnes in July, while remaining broadly stable annually.

China's production declined around 4% year-on-year, whereas output outside China increased 3%.

India remained relatively resilient, with crude steel production climbing 3% year-on-year and 2% month-on-month to 14.4 million tonnes.

Among non-ferrous metals, aluminium rose around 3% month-on-month to $3,251 per tonne in August. Zinc and copper gained about 8% and 6%, respectively, while lead and nickel advanced around 1% each.