Weekly round-up: Indian steel prices strengthen amid tighter supply, improving demand

• Rebar, flat steel prices rise on firm bookings, higher input costs
• Raw materials remain firm; billet, sponge iron trends mixed

Indian steel markets strengthened during the week ended 5 September, supported by tighter raw material availability, higher input costs, firm bookings and improving demand. Rebar, billet, sponge iron, pellets and flat steel prices increased across key regions.

Iron ore and pellet

• PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63%) index for Raipur, increased by INR 200/t w-o-w to INR 11,000/t ($116/t) DAP on 4 September 2026, supported by firm pellet prices across major domestic markets and relatively strong sponge iron, pig iron and billet prices. Pellet offers in Raipur remained largely stable at INR 10,800-10,900/t ($113-114/t) ex-works, while buying activity was moderate as buyers remained cautious at prevailing price levels and continued to target lower prices before committing to fresh purchases.
• C P Arora emerged as the preferred bidder for Odisha’s Patamunda-B Manganese and Iron Ore Block at a 220.60% premium, while AM/NS India won the Barpada South Iron and Manganese Ore Block at a 120.35% premium. Both blocks are located in Koira tehsil, Sundargarh district, with resources of 13.65 mnt and 82.93 mnt of iron ore, respectively. The acquisitions are expected to strengthen raw-material security and support greater backward integration.
• BigMint’s India pellet export index remained steady at $103/t FOB East Coast on 4 September 2026, supported by firmer global iron ore fines prices and improved buying activity at Chinese ports. However, pellet export activity remained muted as soft netbacks and realisations for Indian producers, coupled with limited and selective Chinese buying interest, kept fresh export bookings subdued.
• Lloyds Metals and Energy raised iron ore lump and fines offers by INR 250/t ($2.5/t) and pellet offers by INR 500/t ($5/t) in Chandrapur, Maharashtra, effective 29 August, amid tightening ore availability due to monsoon-related supply disruptions and lower production, along with improved sponge iron and finished steel realisations. Following the hike, lump offers stood at INR 10,250/t ($107/t) FOR Chandrapur, while pellet offers increased to INR 11,250/t ($118/t) ex-Chandrapur. Fines offers on a FOR Raipur basis were heard at around INR 7,250/t ($76/t).

Ferrous scrap

• India’s imported containerised scrap market firmed throughout the week, supported by rising domestic scrap prices and stronger buying interest as the monsoon season neared its end. HMS 80:20 deals were reported at $365-375/t CFR Mundra, while offers moved above $375/t. UK shredded was offered at $412-420/t CFR India.
• However, buyers remained cautious at higher levels, with HMS 80:20 considered workable around $355-365/t. A 10-FCL HMS cargo was booked at $350/t CFR Mundra, while payment terms influenced pricing, with earlier payment attracting discounts of $10-12/t.
• Towards weeklend, activity in Chennai remained slow, although sellers maintained firm levels. UK shredded was offered at $412-415/t and HMS at $360-365/t CFR India. Rising freight costs remained a concern, but had yet to fully reflect in scrap prices. Janmashtami festival hampers were also distributed to market participants.

Coal

• South African thermal coal prices at Indian ports strengthened during the week, supported by higher international energy costs, rising FOB values and tighter replacement economics. RB2 (5,500 NAR) increased to INR 13,000/t ex-Paradip and INR 12,900/t ex-Vizag, while RB3 (4,800 NAR) rose to INR 10,900-11,000/t respectively. Domestic coal prices also gained amid monsoon-related dispatch constraints and tighter spot availability, with higher CIL e-auction premiums further supporting market sentiment. Firm sponge iron prices added to demand; however, buyers remained cautious about fresh imports as elevated replacement costs limited acceptance at higher price levels.
• Indian washed coal prices continued to strengthen in the assessment week ended 2 September 2026 as rising ROM costs and constrained production tightened availability. BigMint assessed 38-39% FC (5,000 GCV) washed coal FOR Raipur at INR 8,100/t on 2 September 2026, up INR 500/t w-o-w. Washeries remained reluctant to accept fresh orders as slower production limited their ability to meet demand. Rising ROM costs further lifted replacement costs and supported higher offers, despite cautious downstream buying.
• India’s metallurgical coke market strengthened sharply, driven by surging coking coal costs, higher Indonesian FOB offers, elevated freight rates and stronger Chinese demand. Indonesian BF-grade met coke (65/63 CSR) rose $22/t w-o-w to around $357/t CFR India, while limited offers and water-related disruptions further tightened availability. Domestic met coke prices also surged to multi-year highs, with BF-grade coke in eastern India rising INR 3,000/t w-o-w to INR 40,000/t ex-Jajpur and western India increasing to INR 35,000/t ex-Gandhidham. Meanwhile, tight coking coal supply and rising raw material costs in China sustained bullish sentiment, with major producers initiating further price hikes, indicating continued upward pressure on met coke prices.

Ferro alloys

• Silico manganese: Silico manganese prices increased by INR 575/t to INR 74,500-75,400/t ($788-798/t) across key regions, while export offers for 65-16 grades rose by $20/t to $906/t FOB Vizag/Haldia.
• The gains were supported by firmer producer offers, margin protection through grade-mix adjustments and MOIL’s September price revision, which kept raw-material costs relatively supported. MOIL, however, kept manganese ore prices unchanged for September after reducing ferro-grade prices by 4% and other grades by 5% in August.
• Ferro manganese: Ferro manganese prices rose by around INR 1,000/t ($100/t) w-o-w to INR 80,000/t ($846/t) exw in Durgapur and Raipur. Prices rose on improved buying interest, steady consumer demand and tighter spot availability, encouraging sellers to raise offers amid limited downside pressure.
• Ferro Silicon:Ferro silicon prices went up by INR 1,300/t ($14/t) w-o-w at INR 88,300/t ($934/t) in Guwahati and INR 87,800/t ($929/t) in Bhutan, up by INR 700/t ($7/t).The price hike could be attributed to tighter supply in the market and higher offers from sellers, as most suppliers were out of stock during the month-end.
• Additionally, Bhutan opened September offers at INR 87,000/t ($921/t), which will provide direction to prices in the coming days.
• Ferro chrome: Ferro chrome prices stayed unchanged to INR 119,000/t ($1,247/t).Market conditions remained largely unchanged, with no major deals concluded during the week. However, higher met coke costs continued to support seller offers.

Semi finished

• Billet: Indian semi-finished steel market witnessed a mixed but predominantly weak trend during the week, with billet prices declining across several markets amid subdued buying interest, cautious procurement and reduced market activity. As per BigMint’s assessment, domestic billet prices in Raipur, Raigarh, Roukela, Ramgarh, Jalna, Mumbai and Ahmedabad market declines by INR 200-900/t ($2-9/t) w-o-w as buyers appeared to adopt a hand-to-mouth procurement approach, while sellers faced pressure to remain competitive amid subdued demand. In contrast, Goa recorded the strongest weekly increase of INR 1,100/t, followed by Hindupur and Chennai, while Durgapur and Mandi Gobindgarh recorded marginal gains.
• Sponge iron: Sponge iron, particularly pellet-based material, faced strong downward pressure. India’s sponge iron prices decreased by INR 50-850/t ($0.5-9/t) w-o-w across various regions. In contrast, the southern region experienced an uptick by INR 50-400/t (0.5-4/t). Overall market activity across sponge iron markets was lower this week, indicating stronger selling pressure as compared to the previous week.
  India’s DRI export prices to Nepal and Bangladesh rose due to tightness in domestic market, However, export demand stays weak indicating higher quoted prices have not yet translated into stronger transaction activity. Pellet-based sponge iron offers to Nepal increased by $18/t w-o-w to $322/t CPT Raxaul, while CDRI/mix sponge iron offers increased by $6/t to $344/t CPT Raxaul. Offers to Bangladesh rose by $2/t to $360/t CPT Benapole.
• Pig iron: In NMDC’s latest pig iron auction conducted on 1 September 2026, 3,900 t out of 10,000 t offered were booked at a base price of INR 38,500/t ex-works, which was higher by INR 650/t from the previous auction. On 22 Aug 2026, the entire 10,000 t offered were sold at an average price of INR 37,850/t.

Finished long steel

• IF-rebar: Buying activity remained limited during the week, with buyers adopting a cautious approach amid weak demand and low stocking requirements. Despite muted trading interest, rising sponge iron prices, along with firm iron ore and coal costs, kept mill input and conversion costs elevated. However, subdued buying interest restricted producers’ ability to fully pass on higher input costs through rebar offers. Mill inventories stood at around 8 days, while order booking visibility remained limited to 3-5 days, reflecting weak near-term demand and cautious market sentiment. Rebar prices are likely to remain range-bound, with elevated input costs providing support while subdued buying interest may cap further gains.
• On a week-on-week basis, rebar prices increased by INR 100-1,700/t across key regions, except in the Raipur and Jalna market where the prices declined by INR 200 repectively, respectively, according to BigMint’s assessment.
• Trade reference prices of Fe 500-grade rebars manufactured via the IF route (10-25 mm size) were assessed at INR 43,700-44,100/t exw Raipur and INR 49,200-49,800/t exw Jalna.
• Trade reference prices of heavy structural steel for the base size 150 mm channel stood at INR 47,700-48,000/t exw Raipur.
• Trade reference prices of wire rod stood at INR 44,500-45,500/t exw Raipur.
• BF-route rebar: BF-route rebar prices rose INR 2,200/t w-o-w to INR 57,200/t ex-Mumbai on 4 September, marking a continuation of the recent firming trend.
• Tight supply supports prices: Ongoing mill maintenance and limited spot availability strengthened producers’ pricing power, with several mills stopping fresh project bookings or delaying project-price announcements.
• Demand and bookings improve: Project rebar prices were workable at INR 58,000-60,000/t landed, while buyers increased replenishment and bookings amid expectations of further price increases and stronger post-monsoon demand.

Flat steel

• BigMint’s HRC benchmark assessment (IS2062, Grade E250, 2.5-8 mm/CTL) in Mumbai increased by INR 1,900/t ($20/t) w-o-w to INR 62,000/t ($656/t) as on 4 September, from INR 60,100/t ($636/t) in the previous assessment.
• Likewise, the CRC benchmark assessment (IS513, Grade O, 0.9 mm/CTL) increased by INR 3,300/t ($35/t) w-o-w to INR 71,100/t ($752/t) as on 4 September, from INR 67,800/t ($717/t) in the previous assessment.
• India’s trade-level HRC prices increased w-o-w, supported by firmer mill indications and limited availability in the trader channel. With prices moving up relatively quickly, buyers initially held back while awaiting clearer price direction before returning to the market as expectations of further increases encouraged selective procurement. Controlled mill dispatches and prioritisation of automotive/B2B customers continued to constrain trader-channel supplies, limiting scope for price negotiations. By the end of the week, buying remained steady but selective, while sellers maintained a firm stance amid tight availability.