- Mills announce price hike amid improving sentiment
- Trade buyers remain cautious despite higher offers
Leading Indian steelmakers have increased their flat steel mill list prices by INR 750-1,500/t for August 2026 deliveries, raising both hot-rolled coil (HRC) and cold-rolled coil (CRC) prices following improved market sentiment and expectations of a gradual demand recovery after the monsoon.
HRC list prices (2.5-8 mm, IS2062, Gr E250 Br) are now in the range of INR 57,000-58,500/t ex-Mumbai, while CRC (0.9 mm, IS513 CR1) list prices have been revised to INR 63,000-66,500/t.
At the trade level, however, price movements remained relatively muted. HRC prices were assessed at around INR 57,700/t ex-Mumbai, while CRC prices stood at approximately INR 64,900/t, indicating that distributors and end-users continue to procure largely on a need-based basis despite the upward revision in mill offers.
Why did tier-1 mills increase flat steel list prices for Aug’26?
The August price increase was primarily driven by tightening domestic supply, as several major integrated steelmakers entered planned maintenance shutdowns, reducing the availability of flat steel in the domestic market. Expectations of lower production during the maintenance period improved market sentiment and encouraged mills to adopt a firmer pricing stance.
The anticipated supply constraint outweighed the impact of seasonally weak monsoon demand, with producers expecting tighter spot availability over the coming weeks. Market participants believe the reduced supply could help improve realizations and support prices until normal production resumes.
Despite the improved sentiment, trade activity remained largely need-based. Distributors continued to maintain comfortable inventory levels, while downstream demand from key consuming sectors remained subdued due to the monsoon. As a result, buyers remained cautious, and the sustainability of the price increase will depend on the extent of supply tightness and the recovery in demand after the monsoon.
Domestic market remains balanced
Domestic HRC trading remained largely stable, with balanced supply offsetting seasonally weak demand. Buying activity was restricted to immediate requirements as distributors remained cautious amid tight liquidity and comfortable inventories. Planned maintenance shutdowns at major mills tightened spot availability, supporting prices despite subdued downstream consumption.
Imports remain high, domestic availability balanced
Import arrivals continued to remain elevated. India’s bulk HRC imports reached 261,618 t as of 24 July, with expected arrivals projected at another 137,137 t by 20 August. South Korea, China and Indonesia remained the leading suppliers
South Korea stayed India’s top steel supplier, with much of its HRC shipments tied to long-term agreements for captive use by Korean manufacturers, largely shielding these volumes from short-term market swings and safeguard measures. China’s higher HRC imports, meanwhile, were driven mainly by pipe and tube manufacturers sourcing under the Advance Authorization Scheme for processing and re-export, rather than merchant trading.
Bulk HRC exports stood at 230,517 t during the same period. Indian HRC export activity stayed weak during the week ended 28 July, with no fresh bookings concluded as buyers awaited clarity on EU tariff-free quota availability and CBAM norms, while geopolitical tensions hit Middle East offers and weak demand pulled down offers to Vietnam.
Outlook
Domestic flat steel prices are expected to strengthen over the coming weeks as mills seek to establish the revised August price levels amid tighter supply resulting from planned maintenance shutdowns. With spot availability likely to remain constrained, distributors may gradually replenish inventories, enabling trade prices to align with higher mill offers.The sustainability of the recent price hike will largely be supported by demand from key steel-consuming sectors such as infrastructure, construction, and automotive. An improvement in offtake from these segments would strengthen market absorption of higher prices and help maintain the current positive pricing momentum.
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