Domestic steel prices have touched a four-year high due to costlier raw materials, especially coking coal, coupled with rise in post monsoon demand, according to market research firm BigMint.
The trend is expected to continue over the remaining quarters of the ongoing fiscal year, it said in a report.
Hot rolled coil (HRC) and CRC -- two of the most common types of flat steel products used globally -- are trading at ₹64,000 per tonne and ₹75,000 a tonne, respectively. Such levels were last seen in June 2022, BigMint data showed.
1 September 2026
Get the latest issue of Outlook Business
From August 1, prices of HRC and CRC have increased by ₹6,000 per tonne and ₹8,500 a tonne, respectively. HRC and CRC were at ₹58,000/ tonne and ₹66,500/tonne at the start of August.
The spike in prices is mainly due to rise in key raw materials coupled with an increase in demand, a BigMint analyst said.
Coking coal, mainly imported, has seen a surge of around $65 per tonne to $305/tonne in just one month. While iron ore fines have seen a rise of ₹200-250 per tonne to ₹4,500 a tonne.
Coking coal alone contributes over 30% to the cost of steel production through blast furnace route.
In April-August FY27, the consumption of steel in India reached 70 MT, posting a 7% year-on-year rise.
On the outlook, BigMint said that the prices are unlikely to cool down in the remaining part of the fiscal as demand is expected to continue from both construction and infrastructure sector.
Advertisement
"These sectors consume 60% of the steel produced in India and demand mostly comes after the post monsoon period every year," the analyst said adding the demand is also complemented from the automotive industry.
HRC and CRC are flat steel used in the auto, appliances and construction industries. Hence, any rise in the prices will impact the prices of vehicles, consumer goods and cost of construction as steel is a raw material for these sectors.
