The domestic steel market continues to witness healthy demand, with finished steel consumption growing by 8 per cent during April–July, according to the Ministry of Steel
Steel prices will increase by ₹1,500-2,000 per tonne to ₹72,500 a tonne in September, on the back of a strong revival in demand post-monsoon and firm trend in input cost.The domestic steel market continues to witness healthy demand, with finished steel consumption growing by 8 per cent during April–July, according to the Ministry of Steel. Hot-Rolled Coil prices were up 15 per cent at about ₹70,448 per tonne in August year-on-year. TMT bar prices have jumped 6 per cent to ₹58,000 a tonne y-o-y in August.The supply situation has remained tight with most steel companies taking annual maintenance shutdowns in anticipation of weak demand during monsoon.Supported by government spending, the steel demand has also been riding on a strong pipeline of infrastructure and construction projects in the last few months. This apart, healthy sales of automobiles and consumer durables are adding to flat-steel demand.Domestic steel prices will move up further in September, led by improving post-monsoon demand, tighter availability and higher steel-making costs, said Bhavik Shah, Research Analyst-Metals and Mining, Choice Institutional Equities.Domestic steel demand is expected to grow at 7 per cent CAGR between FY26 and FY29 and the utilisation is expected to remain above 90 per cent, which provides a favourable medium-term pricing environment, he added.Coking coal prices have risen about 5 per cent from Q1 levels, while higher coal costs are putting pressure on steelmakers’ margins. With coking coal accounting for a significant portion of Blast Furnace steelmaking costs, mills have an incentive to push through price hikes as demand improves, said Shah.Vandana Bharti, Head of Commodity Research, SMC Global Securities, said steel mills have implemented selective price revisions, including recent hikes of about 14 per cent in some flat products, to offset rising input costs and margin pressures.Indian HRC remains about 5-6 per cent below Chinese import parity, despite safeguard duties. However, the discount has narrowed significantly from the historical 20-25 per cent range, partly due to safeguard measures and India becoming a net steel importer in Q1. Steel imports from China, Japan, and Russia increased by about 22 per cent quarter-on-quarter during the period, she said.Vedant Goel, Director, Enlight Metals, said steel prices will increase in the coming weeks, driven primarily by strong market sentiment and healthy demand. The expected price movement highlights the need for manufacturers and steel-consuming industries to adopt proactive procurement strategies and closely monitor market movements, he said.With demand remaining robust across infrastructure, construction and automotive sectors, the Indian steel market is expected to maintain its positive trajectory in the near term, he said.Published on August 31, 2026
