Indian steel prices set to rise further on coking coal costs, demand revival

Business Recorder reported that steel prices in India are seen climbing further in the weeks ahead, as a post-monsoon revival in infrastructure and car demand tightens supply. Mills are also facing dearer coking coal, which lifts their production costs, and some are passing that increase on to buyers. Vedant Goel, a director at Enlight Metals, forecast a rise of about 3,500 rupees per ton over the coming weeks.

Government data showed hot-rolled coil (HRC) prices dipped 280 rupees ($2.96) per metric ton between June and July. Since August, though, HRC has risen 4,000 rupees per metric ton, reaching a four-year high by early September, according to BigMint. Maintenance stoppages at major mills, tighter spot availability and thin distributor stocks drove the rebound, the consultancy said.

Despite a safeguard duty and an anti-dumping probe into HRC shipments from China, Japan and Russia, finished steel imports climbed 36.6% from a year earlier between April and July. China was the largest supplier with 31% of India's imports. Fitch Ratings had flagged in a September 1 report that higher imports remain the key risk to margins, and the executives said imports could limit mills' pricing power, making a significant increase unlikely in the coming months.