Steel Prices Surge 18-25% as Hot-Rolled Coils Hit ₹55,900/t, Rebar Reaches ₹59,800/t
The Indian steel market has experienced significant price increases of 18-25% across key products, with hot-rolled BC coils reaching ₹55,900 per tonne and primary rebar hitting ₹59,800 per tonne. This domestic surge aligns with global steel price increases of 5-7% driven by gas supply disruptions, while declining coking coal prices support improved margins for steel manufacturers.
*this image is generated using AI for illustrative purposes only.
The Indian steel market has witnessed substantial price increases of 18-25% across key product categories, with hot-rolled BC coils and primary rebar experiencing significant upward movement in recent pricing updates.
Domestic Steel Price Surge
Latest market data reveals sharp increases in steel product prices, with hot-rolled BC coils now trading at ₹55,900 per tonne, representing an 18.13% increase from the previous level of ₹47,317 per tonne. Similarly, primary rebar prices have surged to ₹59,800 per tonne compared to ₹47,615 per tonne, marking a substantial 25.58% increase.
| Steel Product: | Current Price (₹/t) | Previous Price (₹/t) | Increase (%) |
|---|---|---|---|
| Hot-Rolled BC Coils: | 55,900 | 47,317 | 18.13% |
| Primary Rebar: | 59,800 | 47,615 | 25.58% |
Global Market Context
According to HSBC's analysis, gas supply disruptions have resulted in a notable increase in global steel prices, with the market experiencing a rise of 5-7%. This translates to approximately $500 per tonne in absolute terms, reflecting the significant impact of energy supply constraints on steel production costs globally.
Input Cost Trends and Margin Impact
The report highlights a positive development for steel producers in the form of declining coking coal prices. Input costs have decreased by 11% within a month, creating favorable conditions for steel margins. HSBC expects this trend to support improved profitability for steel manufacturers during the first half of FY27.
| Cost Factor: | Trend | Impact Period |
|---|---|---|
| Coking Coal Prices: | -11% (monthly) | Supportive |
| Steel Margins: | Improving | 1HFY27 |
Aluminium Market Developments
The aluminium sector is experiencing significant premium increases, with rates surging above $200 per tonne. This surge is attributed to shipment disruptions originating from the Middle East region, highlighting the interconnected nature of global commodity supply chains and geopolitical factors affecting market pricing.
The combination of these factors presents a mixed outlook for the metals sector, with global supply disruptions creating both challenges and opportunities across different commodity segments.
How might the 18-25% steel price surge impact India's infrastructure and construction sectors in the coming quarters?
Will the declining coking coal prices be sufficient to offset the impact of gas supply disruptions on steel producers' margins beyond H1 FY27?
Could the Middle East shipment disruptions affecting aluminium premiums spread to other metal commodities and create broader supply chain challenges?
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