India Hot Rolled Coil (HRC) prices may rise by ₹3,500 per tonne in April amid raw material cost pressure

India’s domestic steel market is likely to witness another round of price revision in April, with leading steel producers planning to increase hot-rolled (HR) coil prices by ₹3,500 per tonne. If implemented, HR coil prices are expected to reach around ₹64,500 per tonne, reflecting the sustained pressure from rising raw material and energy costs.

The proposed increase comes at a time when the steel sector is grappling with sharp cost escalation across the value chain. Industry sources indicate that iron ore prices have moved up significantly after ****, the country’s largest iron ore producer, raised prices by around 11 per cent in April. The revised rates for lump ore and fines from its Bailadila mines in Chhattisgarh have added to cost burdens for steelmakers.

Apart from domestic iron ore prices, steel companies are also facing higher dependence on imported coking coal. With inventories of key raw materials nearly exhausted, many producers are now relying heavily on imports, exposing them to global shipping and insurance cost volatility.

The ongoing geopolitical tensions in West Asia have further worsened the situation. Higher freight charges, insurance premiums and supply disruptions are pushing up the landed cost of essential raw materials, especially coking coal and energy inputs.

Cold-rolled (CR) coil prices are also expected to move higher by around ₹3,000 per tonne, following the HR coil increase. Market analysts believe the latest price revision is largely cost-driven rather than demand-led, as downstream demand remains stable but not robust enough to independently support sharp hikes.

Industry experts say the sustainability of further price increases will depend on global raw material trends, import availability and the pace of recovery in sectors such as infrastructure, construction and automotive manufacturing.

As cost pressures continue to mount, steel companies are expected to focus on supply chain resilience and calibrated pricing strategies to protect margins in the coming quarters.