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

Steel prices have soared to their highest point in four years, according to a recent report by BigMint. Hot-rolled coil and cold-rolled coil, common flat steel products, are now priced at ₹64,000 and ₹75,000 per tonne respectively, both record highs last seen in June of 2022. Prices for hot-rolled coil (HRC) have risen by ₹6,000 per tonne since August 1, climbing to ₹58,000, while cold-rolled coil (CRC) costs have increased by ₹8,500 per tonne, reaching ₹66,500.

BigMint attributes this price surge to expensive raw materials and an uptick in domestic demand. The cost of imported coking coal has jumped around $65 per tonne in a month to $305 per tonne, while iron ore fines have risen by ₹200–₹250 per tonne to ₹4,500. Coking coal makes up more than 30% of steel production costs under the blast furnace method, and any price increase directly impacts margins, compelling steel producers to hike prices.

India's domestic steel consumption between April and August of the fiscal year 2027 reached 70 million tonnes, marking a 7% year-on-year growth. BigMint anticipates prices to stay high for the remainder of the year as construction and infrastructure demand increases post-monsoon. Both sectors account for around 60% of India's steel production, with automotive demand further bolstering the steel market in the coming months.

Consumers may face higher costs for vehicles, consumer durables, and construction projects due to the sustained steel price inflation. Whether manufacturers absorb the additional expenses or pass them to customers will determine the extent of the impact.