Indian steel prices are poised to climb further amid rising coking coal costs and strengthening post-monsoon demand, according to market analysts. Hot-rolled coil (HRC) prices have already registered gains of ₹4,000 per tonne since August, reflecting the upward pressure on the domestic steel market. Several demand drivers are expected to support steel prices in the coming period.
Infrastructure projects, automotive sector activity, and festive season restocking are anticipated to bolster consumption across key end-user segments. These factors, combined with elevated raw material costs, particularly coking coal, are contributing to the bullish outlook for steel valuations. However, the outlook carries certain headwinds.
Rising imports into India may constrain further price appreciation as increased international supply pressures the domestic market. Additionally, margin pressure on domestic steelmakers is expected to persist as raw material costs remain elevated relative to selling prices, potentially tempering the extent of further price increases. The interplay between domestic demand recovery, raw material inflation, and import competition will likely determine the trajectory of Indian steel prices over the near term.
Industry participants are closely monitoring coking coal cost movements and demand patterns to assess price sustainability.
Source: facebook.com