India: Leading alloy steel manufacturer raises round bar list prices by INR 2,000-2,500/t

• Mills raise October list prices by INR 2,000-2,500/t
• Automotive demand expectations strengthen mill pricing

An Indian steel major has raised alloy steel round bar list prices by INR 2,000-2,500/t for early October deliveries, taking the cumulative increase to INR 4,500/t since the beginning of September. 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 75,000/t ex-Mumbai. Buying activity improved across key consuming sectors, while firm producer offers and elevated input costs supported higher transaction levels.

Higher input costs strengthen mill pricing

Alloy steel producers maintained firm offers during September and into October as scrap, ferro alloys, sponge iron, coke and other metallic input costs remained elevated. Higher replacement and conversion costs have reduced the scope for mills to absorb cost pressures through discounts.

The increase in production costs has allowed producers to pass through part of the pressure to buyers, particularly for alloy grades with higher alloying-element content. The latest October hike therefore reflects both higher cost levels and mills’ efforts to protect margins.

Automotive demand provides further upside

Demand from automotive, auto component, engineering and machinery manufacturers remained relatively stable during September and early October. Grades including EN-19, EN-24, EN-353, 20MnCr5, SAE 8620 and SAE 52100 continued to see demand from these sectors.

Market participants expect automotive procurement to strengthen in the coming weeks, which could improve order visibility for alloy steel producers. Mills are therefore seeking to push list prices higher ahead of the expected increase in automotive buying activity.

Outlook

Alloy steel round bar prices are expected to remain firm through October as mills anticipate stronger automotive procurement and sustained demand from engineering and machinery sectors. Improving order visibility could give producers greater scope to defend recent price increases and test higher list prices during fresh negotiations.

However, the extent of further increases will depend on the pace of automotive buying, movement in scrap and alloying costs, and availability of specialised grades.