Steel Prices Rise for Third Consecutive Month, HRC Rates Reach ₹64,700 a Tonne

Steel companies in India have increased prices by ₹2,000–₹2,700 a tonne in October, marking the third consecutive monthly hike as rising raw material costs and resilient domestic demand support prices.

Hot-rolled coil (HRC) prices have increased to ₹64,700 a tonne from ₹62,000 in September, according to market data cited in the report. The latest increase follows a series of price hikes implemented by domestic producers since September, pushing steel prices to levels significantly above those recorded last year.

A senior steel industry official attributed the increase to geopolitical uncertainty, which has raised the cost of imported raw materials, including coking coal, thermal coal and ferro-alloys. Higher shipping costs, along with rising domestic fuel and power expenses, have added to the pressure on manufacturers.

Despite concerns over broader macroeconomic inflation, India’s steel demand has remained resilient, supported by government spending on infrastructure and activity in the urban real estate sector. Steel consumption in the country is projected to grow by nearly 7.9%, according to the figures cited in the report.

Bhavik Bhagwanji Shah, analyst for metals and mining at Choice Institutional Equities, said higher global coking coal costs, tight iron ore supplies and rising energy expenses were driving the price increases. Post-monsoon restocking and steady industrial consumption have also enabled manufacturers to pass on elevated input costs.

Shah expects steel prices to remain supported in the near term as supply constraints and geopolitical pressures affect the availability and cost of key raw materials. He said persistently high input costs could limit the possibility of sharp price corrections through the remainder of the year.

Antu Eapen Thomas, senior research analyst at Geojit Investments, said maintenance shutdowns at some mills had tightened near-term supply. Imports have also become less competitive due to safeguard duties and rupee weakness, supporting domestic producers’ pricing power.

However, higher inflation and rising interest rates could moderate demand in housing and automobiles, potentially slowing further price increases.

Rajesh Singla, CEO and fund manager at Alpha AMC, described the latest increase as the latter stage of a cost-driven pricing cycle that began in August. He said steel prices had risen by roughly ₹4,000 a tonne to a four-year high, with higher Australian premium coking coal prices contributing to the increase.