Improved domestic demand, driven by the construction sector and infra projects, and a rise in raw material prices, primarily coal, saw India’s steel majors increase prices by 2–8 per cent across categories like hot-rolled coils and rebars (used mostly in construction sector), and even cold rolled coils. This is the first major price hike that mills have initiated since the beginning of this fiscal in April.
Trade sources say price of benchmark HRC (ex-Mumbai) was increased to ₹56,700 per tonne, up 2 per cent over August, for early September deliveries. Similarly, re-bar prices jumped by ₹3,700 per tonne (8 per cent) to ₹54,100/tonne. On the other hand, cold rolled coils saw a somewhat muted increase of 1.5 per cent of ₹800 per tonne, to ₹61,100 per tonne.
According to Motilal Oswal Financial Services, steel demand in India is expected to pick up September onwards, “as construction activities pick up pace post the monsoon season with new projects coming on stream”.
