India: Major mills raise flat steel prices by INR 650-2,500/t in September

• Lower inventories keep market availability constrained
• Higher input costs support firm mill offers

India’s major domestic steel mills have raised flat steel price lists further for September deliveries. In September, HRC price lists increased by INR 650-2,000/t, taking price-list levels to around INR 59,900-63,000/t. CRC price lists rose by INR 650-2,250/t, taking levels to INR 66,500-71,250/t. In the coated segment, GP price lists increased by around INR 2,500/t, taking levels to INR 77,250-81,250/t, while PPGI price lists rose by around INR 2,500/t among select producers, taking levels to INR 85,500-87,650/t.

From August to September, cumulative mill price-list increases stood at INR 1,900-2,800/t for HRC and INR 1,900-3,000/t for CRC. GP price lists increased by INR 2,750-3,000/t, while PPGI price lists rose by INR 2,500-3,500/t over the same period.

Market sentiment

Market sentiment has strengthened following the latest mill price revisions, although buying activity remains measured at higher price levels. Buyers are closely monitoring market movement before committing to larger volumes.

Market-level inventories are estimated at around 70% of normal levels, indicating relatively low stock availability across the distribution channel. The lower inventory position, coupled with tighter material availability, has supported higher mill offers.

Supply and cost factors

Tighter availability and higher raw material and operating costs continue to support the upward movement in mill prices. Higher substrate costs have also contributed to the increase in coated flat steel prices. Despite cautious buying, mills have maintained firm offers amid lower market availability.

Outlook

The near-term outlook for flat steel prices remains firm. Lower inventory levels, constrained availability and elevated input costs are expected to continue supporting prices. HRC and CRC prices could see a further INR 1,000-1,500/t increase over the coming month, subject to downstream demand and the ability of the market to absorb the latest price increases.