Indian Steel Prices Hit Four-Year High as Costs and Demand Rise

Indian steel prices have climbed to a four-year high, with rising raw material costs and stronger post-monsoon demand pushing prices of key flat steel products higher. Hot Rolled Coil (HRC) is currently priced at around ₹64,000 per tonne, while Cold Rolled Coil (CRC) has reached ₹75,000 per tonne.

These price levels were last seen in June 2022, according to market data cited in a PTI report. The latest increase follows a sharp movement since the beginning of August, when HRC was priced at ₹58,000 per tonne and CRC at ₹66,500 per tonne. Since then, HRC prices have increased by ₹6,000 per tonne, while CRC has risen by ₹8,500.

A key factor behind the increase is the rising cost of raw materials used in steel production. Imported coking coal prices have increased by around $65 per tonne in one month to approximately $305 per tonne. Iron ore fines have also risen by around ₹200–250 per tonne to about ₹4,500 per tonne.

Coking coal is particularly important for blast furnace-based steel production and accounts for more than 30% of production costs through this route. Higher input costs are therefore adding pressure to steel producers and supporting higher market prices.

Demand is also contributing to the price movement. India’s steel consumption reached about 70 million tonnes between April and August in the Financial Year 2026–27, registering 7% year-on-year growth. Construction and infrastructure activity generally gains momentum after the monsoon, while the automotive sector remains another important source of demand for flat steel products.

HRC and CRC are widely used in automobiles, appliances and construction. Sustained increases in their prices can therefore influence manufacturing expenses and construction costs, depending on how much of the increase is passed through the supply chain.

With raw material costs remaining elevated and demand expected to strengthen after the monsoon, steel prices are expected to remain firm through the remaining quarters of the financial year. Market conditions will depend on input costs, industrial activity and demand across major consuming sectors.