Steel Prices Hit 4-Year High, Uptrend Likely to Continue
What Happened
Domestic steel prices have climbed to their highest level in four years, according to a report by BigMint. Prices of Hot Rolled Coil (HRC) have risen to ₹64,000 per tonne, while Cold Rolled Coil (CRC) has reached ₹75,000 per tonne, levels last seen in June 2022. Since the start of August, HRC prices have increased by ₹6,000 per tonne and CRC by ₹8,500 per tonne. The surge is being driven by a sharp rise in raw material costs, particularly coking coal, which has increased by about $65 per tonne to $305 per tonne in a month, along with higher iron ore prices and stronger post-monsoon demand.
Key Takeaways
The report expects steel prices to remain firm through the second half of FY27 as demand from the construction, infrastructure, and automotive sectors stays strong. Higher steel prices could eventually raise costs for vehicles, appliances, and construction projects, where steel is a key input.