Industry Odisha Bureau, Sep 22: Domestic steel prices have reached their highest level in four years. Coking coal costs and stronger demand are driving the increase. BigMint expects the trend to persist through the fiscal year.
HRC and CRC Prices Climb Sharply
Hot rolled coil is currently trading around Rs 64,000 per tonne. Cold rolled coil stands near Rs 75,000 per tonne. Both levels match those last seen in June 2022. Since August 1, HRC has risen by Rs 6,000 per tonne. CRC has climbed Rs 8,500 per tonne over the same period. Early-August prices stood at Rs 58,000 for HRC and Rs 66,500 for CRC.
Coking Coal Raises Steelmaking Costs
Coking coal, largely imported, has driven much of this pressure. Its price rose by around $65 per tonne within a month. It now trades near $305 per tonne. Coking coal contributes more than 30% of blast-furnace steel production costs. This makes it a significant factor behind recent price movements.
Iron Ore Adds Further Raw-Material Pressure
Iron ore fines have also become costlier. Prices increased by Rs 200 to Rs 250 per tonne. They now stand around Rs 4,500 per tonne. This adds to overall input-cost pressure facing Indian steelmakers.
Indian Steel Demand Continues Growing
Domestic demand has grown alongside these cost increases. Steel consumption in India reached 70 MT between April and August FY27. That marked a 7% year-on-year rise. Stronger consumption has coincided with the price climb, rather than offsetting it.
Infrastructure and Construction Support Post-Monsoon Demand
BigMint expects construction and infrastructure to keep driving demand. According to the research firm, these sectors consume 60% of India’s steel output. Demand from them typically strengthens after the monsoon season. Automotive demand adds further support, BigMint said, without displacing construction’s larger role.
Higher Steel Costs Reach Downstream Industries
HRC and CRC serve multiple industries beyond steelmaking. They are widely used in automobiles, appliances and construction. Higher input costs could create pressure across these sectors. However, how companies manage or pass through those costs remains unclear from current data.
BigMint Sees Elevated Prices Through FY27
BigMint expects steel prices to stay elevated for the rest of the fiscal year. The firm points to sustained demand alongside higher raw-material costs. This outlook reflects the research firm’s assessment rather than a certainty.
For now, India’s steel market sits at a four-year price peak. Rising coking coal and iron ore costs have combined with resilient consumption. Whether this balance holds through FY27 will depend on both raw-material trends and demand from construction, infrastructure and automotive sectors in the months ahead.
