Stories
Steel Prices Hit 4-Year High, Trend to Continue in H2 Due to Raw Material Costs
- •Domestic steel prices have reached a four-year high, driven by increased raw material costs, particularly coking coal, and a surge in post-monsoon demand.
- •Hot rolled coil (HRC) and cold rolled coil (CRC) are trading at Rs 64,000 per tonne and Rs 75,000 per tonne, respectively, levels last observed in June 2022.
- •Since August 1, HRC prices have risen by Rs 6,000 per tonne and CRC by Rs 8,500 per tonne.
- •The price hike is primarily attributed to a significant increase in coking coal prices (up USD 65 to USD 305/tonne) and iron ore fines (up Rs 200-250 to Rs 4,500/tonne).
- •BigMint predicts prices will remain high for the rest of the fiscal year, with strong demand from the construction, infrastructure, and automotive sectors.
Key Questions Answered
Hot rolled coil (HRC) and cold rolled coil (CRC) are trading at Rs 64,000 per tonne and Rs 75,000 per tonne, respectively. Since August 1, HRC prices have increased by Rs 6,000 per tonne, while CRC prices have surged by Rs 8,500 per tonne.
The spike in steel prices is primarily driven by costlier raw materials, particularly imported coking coal, alongside a surge in post-monsoon demand. Coking coal prices have jumped by about USD 65 to reach USD 305 per tonne within a month, while iron ore fines have risen to Rs 4,500 a tonne.
No, steel prices are unlikely to cool down during the rest of the fiscal year because demand is projected to remain strong from the construction and infrastructure sectors. These sectors account for 60 percent of India's steel consumption, with additional demand coming from the automotive industry.
