Archive · 8 Sep 2026
Indian Steel Prices Poised Higher as Coal Costs Rise
Steel prices in India may go up soon.
This is partly because construction and car-making activity usually become stronger after the monsoon.
Festive-season buying and infrastructure projects may also increase demand.
The coal used to make steel has become more expensive, raising producers’ costs.
Some steel mills are passing these higher costs to customers.
Prices have already risen sharply for hot-rolled steel.
However, India is also receiving more steel from other countries.
More imports could make it harder for Indian mills to raise prices further.
For now, stronger demand and limited local supply are expected to support higher prices.
Indian steel prices are expected to rise as post-monsoon infrastructure and automotive demand strengthens.
Hot-rolled coil prices increased Rs 4,000 per tonne from August to early September, reaching a four-year high.
Higher coking coal costs are pressuring producers, who have passed some increases on to customers.
Planned mill maintenance, tighter spot availability and low distributor inventories are supporting prices.
Rising imports, including increased shipments from China, could limit mills’ pricing power and margin recovery.
- Who
- Indian steelmakers, infrastructure and automotive companies, distributors, importers and analysts including BigMint, Enlight Metals, CRU and Fitch Ratings.
- What
- Indian steel prices are expected to rise further as demand recovers and coking coal costs increase, although higher imports may limit the increase.
- When
- Prices rose from August to early September, and a further increase is expected in the coming weeks.
- Where
- India, with imports arriving particularly from China, Japan and Russia.
- Why
- Seasonal demand, infrastructure and automotive activity, tighter domestic availability, low inventories and higher coking coal costs are supporting prices; rising imports could restrain them.
Factors Supporting Higher Prices
Factors Limiting Price Increases
Demand and supply
Factors Supporting Higher Prices
Post-monsoon infrastructure and automotive demand, festive-season buying, tighter spot availability and low inventories are expected to push prices higher.
Factors Limiting Price Increases
Rising imports and increased overseas supply could give buyers more alternatives and limit domestic mills’ pricing power.
Producer margins
Factors Supporting Higher Prices
Higher steel prices could help mills recover margins squeezed by rising coking coal and other raw-material costs.
Factors Limiting Price Increases
Competitive import pressure could weaken margins if overseas shipments continue to increase.
Impact on customers
Factors Supporting Higher Prices
Stronger demand may support steelmakers and encourage infrastructure, construction and automotive activity.
Factors Limiting Price Increases
Higher steel prices could increase input costs for infrastructure, construction and automobile companies.
- Expected near-term increase
- About Rs 3,500 per tonne, according to Enlight Metals director Vedant Goel.
- Recent HRC increase
- Rs 4,000 per tonne between August and early September.
- Recent price decline
- Government data showed HRC and other steel prices fell by about Rs 280 per metric tonne between June and July.
- Import growth
- Finished steel imports rose 36.6% year over year between April and July.
- Largest supplier
- China accounted for 31% of India’s finished steel imports during that period.
- Import measures
- India imposed a safeguard duty on some steel imports and launched an anti-dumping investigation into HRC from China, Japan and Russia.
- Market supports
- Planned maintenance shutdowns, tighter spot availability, low distributor inventories, post-monsoon restocking and festive buying are supporting prices.