Domestic steel prices across India have surged to their highest mark in four years, fueled by escalating raw material expenses and a strong revival in post-monsoon consumption. According to market research firm BigMint, the sharp upturn is primarily led by costlier inputs such as imported coking coal, and market conditions suggest that this upward momentum across steel prices is likely to persist through the remaining quarters of the current financial year.
Flat Steel Benchmarks Reach Multi-Year Peaks
Fresh data compiled by BigMint shows that Hot Rolled Coil (HRC) prices in the domestic market have climbed to 64,000 rupees per ton, while Cold Rolled Coil (CRC) rates have hit 75,000 rupees per ton. Hot Rolled Coil and Cold Rolled Coil represent the most widely used flat steel products globally across construction, heavy engineering, and consumer goods manufacturing. The Indian market last witnessed steel prices trading at these elevated levels back in June 2022.
Substantial Price Jump Recorded Since August
The upward trajectory in finished steel has accelerated sharply over the past few weeks. Since August 1, Hot Rolled Coil prices have risen by 6,000 rupees per ton, while Cold Rolled Coil has jumped by a substantial 8,500 rupees per ton. At the start of August this year, Hot Rolled Coil was quoted at 58,000 rupees per ton, whereas Cold Rolled Coil stood at 66,500 rupees per ton before the recent series of upward revisions took effect.
Escalating Costs of Coking Coal and Iron Ore
A research analyst at BigMint noted that the run-up in domestic steel prices stems from higher input procurement costs coinciding with stronger market demand. The price of imported coking coal escalated by roughly 65 dollars per ton within just a single month, touching 305 dollars per ton. In tandem, iron ore fines witnessed an increase of 200 to 250 rupees per ton, pushing their price level to 4,500 rupees per ton.
Sustained Demand Keeps Pressure on Pricing
In conventional blast furnace steelmaking, coking coal alone accounts for more than 30 percent of the total production cost, making domestic mill realizations highly sensitive to overseas raw material swings. On the demand side, steel consumption in India reached 70 MT between April and August of fiscal year 2027, marking a 7 percent year-on-year growth. BigMint indicated that prices are unlikely to cool down during the remainder of the fiscal year, as robust requirements across both the infrastructure and construction sectors continue to support high volumes.
