India: Alloy steel round bar prices rise as October hikes reach INR 3,500/t

• Steel major raises October prices by INR 3,500/t

• Automotive demand expectations support firm offers

An Indian steel major has raised alloy steel round bar list prices by INR 1,000/t in the week ended 17 October, while EAF-route mills maintained stable prices. This takes the cumulative increase for October to INR 3,500/t for the steel major and INR 1,000/t for EAF-route mills. The latest increase comes as mills face elevated input costs and anticipate stronger procurement from the automotive sector in the coming weeks.

BF-route alloy steel round bar EN-8 prices were assessed at around INR 78,500/t ex-Mumbai. Buying activity improved across key consuming sectors, while firm producer offers and elevated input costs continued to support higher transaction levels.

Input cost pressures keep producer offers firm

Alloy steel mills continued to hold firm price levels amid persistently high input costs, including scrap, ferro alloys, sponge iron and coke. Rising raw material and processing expenses have increased production costs, limiting the scope for producers to offer substantial discounts to buyers.

Automotive sector remains a key demand driver

Demand from the automotive, auto component, engineering and machinery sectors remained broadly stable during September and early October. Key grades such as EN-19, EN-24, EN-353, 20MnCr5, SAE 8620 and SAE 52100 continued to receive buying interest from these end-use industries.

Market participants expect procurement from automotive manufacturers and component suppliers to improve in the coming weeks. In anticipation of stronger demand, producers are maintaining firm offers and looking to secure higher realisations during upcoming negotiations. However, the pace of fresh bookings will remain an important factor in determining the extent of further price movements.

Outlook

Alloy steel round bar prices are likely to remain firm through October, supported by elevated input costs and expectations of improved automotive procurement. Stable demand from engineering and machinery segments is also expected to provide a degree of support to prevailing price levels.