Domestic steel prices in India have climbed to a four-year high, driven by higher raw material costs, particularly coking coal, along with improving demand following the monsoon season, according to a report by market research firm BigMint.
Hot-rolled coil (HRC) prices have reached around ₹64,000 per tonne, while cold-rolled coil (CRC) prices stand at about ₹75,000 per tonne. These levels were last recorded in June 2022, according to BigMint data.
Since August 1, HRC prices have increased by ₹6,000 per tonne, from ₹58,000 to ₹64,000 per tonne. CRC prices have risen by ₹8,500 per tonne over the same period, moving from ₹66,500 to ₹75,000 per tonne.
The increase has been attributed primarily to higher costs of key raw materials and a recovery in demand. Coking coal, a major input for blast furnace-based steelmaking, has seen a sharp increase in prices.
Imported coking coal prices have risen by around $65 per tonne in just one month to approximately $305 per tonne. Iron ore fines prices have also increased by ₹200-250 per tonne to around ₹4,500 per tonne.
Coking coal accounts for more than 30 per cent of the cost of steel production through the blast furnace route, making the recent increase a significant factor for steelmakers’ input costs.
Demand has also remained supportive. India’s steel consumption reached 70 million tonnes during April-August of FY27, registering a 7 per cent year-on-year increase. Consumption from construction and infrastructure is expected to strengthen further after the monsoon season.
Construction and infrastructure together account for around 60 per cent of steel consumption in India, with demand from these sectors typically picking up after the monsoon. The automotive sector is also contributing to the improvement in overall steel demand.
BigMint expects domestic steel prices to remain elevated through the remaining quarters of the current financial year, as higher raw material costs coincide with improving demand.
The current pricing trend is also being supported by tighter availability in parts of the domestic market. Maintenance-related supply constraints at steel mills and restocking activity after the monsoon are adding to the near-term firmness in prices.
For steel-consuming industries, sustained higher prices could add to input costs across construction, infrastructure and automotive manufacturing. For producers, the price increase provides scope to offset some of the pressure created by higher raw material expenses.
