Steel Turns Red-Hot After Four Years, Report Sees Price Rally Continuing Through The Second Half

New Delhi: Domestic steel prices have climbed to their highest level in four years as rising coking coal and iron ore costs combine with stronger post-monsoon demand, according to BigMint.

Hot-rolled coil and cold-rolled coil, widely used flat steel products, are trading at ₹64,000 and ₹75,000 per tonne, respectively. These levels were last recorded in June 2022.

Since August 1, HRC prices have increased by ₹6,000 per tonne from ₹58,000. CRC has become costlier by ₹8,500 per tonne, rising from ₹66,500 at the beginning of August.

Raw Material Costs Drive Increase

BigMint attributed the steel price rise to expensive raw materials and improving domestic demand.

Imported coking coal prices have surged by around $65 per tonne in a month to $305 per tonne. Iron ore fines have increased by ₹200–₹250 per tonne to ₹4,500.

Coking coal accounts for more than 30 per cent of steel production costs under the blast furnace route. An increase in its price directly affects margins and forces steel producers to consider higher prices.

Domestic Steel Demand Remains Firm

India consumed 70 million tonnes of steel between April and August FY27, marking year-on-year growth of 7 per cent.

BigMint expects prices to remain elevated during the remaining quarters of the year as construction and infrastructure demand strengthens post-monsoon.

These two sectors consume around 60 per cent of India’s steel production. Demand from the automotive industry will further support the steel market in coming months.

Consumers May Face Higher Costs

HRC and CRC are raw materials for automobiles, household appliances, construction projects and other manufactured goods.

Sustained steel price inflation could therefore increase vehicle expenses, raise consumer durable prices and push construction costs higher. The extent of the impact will depend on whether manufacturers absorb the additional expenses or pass them on to customers.