Weekly round-up: Steel prices rise as tight supply and firm raw material costs support markets

• Rebar and semi-finished steel prices climbed amid stronger buying and tightening availability.
• Higher coal, iron ore and scrap costs continued supporting steel price increases.

Indian steel markets strengthened during the week, 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

• Odisha Mining Corporation (OMC) auctioned 1.83 mnt of iron ore on 19 August, comprising 1.21 mnt of fines (66%) and 0.62 mnt of lumps (34%). Fines received bids for 1.159 mnt, with around 96% of the offered quantity booked, while lumps received bids for 0.618 mnt, representing nearly 99% of the quantity offered. Lumps winning bids ranged from INR 4,400-7,700/t, with the weighted-average premium rising by around INR 170/t m-o-m over notified base prices, while premiums for select lots reached as high as INR 1,750/t. Meanwhile, weighted-average bids for fines remained broadly stable m-o-m. The significantly lower auction volume amid heavy monsoon-related mining disruptions tightened availability, lending support to lump ore prices.
• Lloyds Metals and Energy has raised its iron ore lump and pellet offers by INR 250/t in Chandrapur, Maharashtra, effective 20 August, as monsoon-related supply disruptions tighten availability of lump ore and stronger sponge iron realisations support procurement. Lump offers increased to INR 10,000/t, while pellet offers rose to INR 10,750/t ex-works while fines (Fe 63%) offer remained unchanged.
• PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63%) index for Raipur, increased by INR 400/t w-o-w to INR 10,600/t ($111/t) DAP on 21 August 2026. supported by a broad-based rise in semi-finished and finished steel prices across central and eastern India. Pellet offers also moved higher, with sellers quoting above INR 10,300/t ($107/t) ex-works, while improved procurement from sponge iron and billet producers, coupled with limited availability of alternative iron ore feedstock, strengthened buying interest and allowed pellet producers to hold firm on higher offers.

Ferrous Scrap

• India’s imported containerised scrap market ended the week with firmer seller expectations, although actual buying remained cautious. Shredded scrap offers increased from around $375-380/t earlier in the week to $395-400/t CFR India, while HMS 80:20 offers were largely in the $335-345/t CFR range. However, buyers continued to target lower levels, with shredded bids near $375-380/t CFR Nhava Sheva and HMS 80:20 bids around $310-315/t, keeping the bid-offer gap wide and limiting confirmed deals.
• The higher offers were supported by rising domestic steel prices and expectations of improving demand as the monsoon season progresses towards its end. However, an unfavorable exchange rate, competitive domestic scrap prices and the availability of alternatives such as DRI and pig iron continued to make imports less attractive. Mills therefore remained reluctant to commit to high-priced or long-voyage cargoes and largely preferred domestic material.
• Better demand from northern India provided some support, but western Indian buyers remained cautious.

Coal

• South African thermal coal prices strengthened further during the week ended 21 August. RB2 (5,500 NAR) ex-Paradip rose INR 400/t w-o-w to INR 11,850/t, while ex-Vizag increased INR 300/t to INR 11,700/t. RB3 rose INR 400/t to INR 9,850/t at Paradip and INR 250/t to INR 9,700/t at Vizag. Firmer FOB offers, higher sponge iron prices and domestic coal shortages supported prices, although high import costs kept buying need-based.
• Domestic non-coking coal prices remained firm, with 5,000 GCV ex-Bilaspur rising INR 150/t w-o-w to INR 6,900/t and 4,500 GCV increasing INR 150/t to INR 5,300/t as on 21 August. Prices were supported by monsoon-related dispatch constraints, reduced auction frequency and firm SECL auction premiums, with G8 premiums reaching 119.5% on 17 August. However, trader-level transactions remained limited despite higher replacement costs.
• Washed coal prices also strengthened as monsoon conditions restricted ROM coal availability and slowed washery production. BigMint assessed 38-39% FC (5,000 GCV) washed coal FOR Raipur at INR 7,050/t on 19 August, up INR 50/t w-o-w. Slower SECL dispatches and reduced auction frequency further constrained feedstock availability, while consumer enquiries remained active. Several sellers held back offers, keeping the market supply-led despite limited broad-based demand improvement.
• India’s met coke market strengthened during the week as tighter domestic availability and higher imported raw material costs supported seller offers. BF-grade coke increased INR 500/t w-o-w to INR 35,800/t ex-Jajpur, while western prices rose INR 300/t to INR 33,800/t ex-Gandhidham. Foundry-grade coke increased INR 200/t to INR 36,600/t ex-Rajkot. Imported Indonesian BF-grade coke rose $5/t to $313/t CFR India, while Australian PHCC increased $21/t to $245/t FOB, raising replacement costs for domestic producers.

Ferro alloys

• Silico manganese:Silico manganese prices remained largely stable during the week, edging up by INR 150/t ($2/t) w-o-w to INR 72,900-73,900/t ($762-772/t) across key regions. Tight spot availability and limited offers at lower price levels provided support, with major producers largely booked through August. However, subdued spot trading activity continued to limit significant upside.
• Ferro manganese:Ferro manganese prices edged down by INR 200/t ($2/t) w-o-w to INR 78,300-78,400/t ($818-819/t) exw Durgapur and Raipur. The marginal correction was largely technical, with balanced supply-demand conditions and limited seller pressure keeping the market rangebound. Buyers remained cautious, preventing a meaningful recovery in spot prices.
• Ferro chrome:Ferro chrome prices remained broadly stable w-o-w, easing by INR 100/t ($1/t) to INR 119,000/t ($1,243/t) exw Jajpur, as market participants adopted a wait-and-watch approach ahead of the latest OMC chrome ore auction.
• OMC offered 104,700 t of chrome ore, of which 68,800 t was booked on 19 August. Bids for most grades declined by 1-2% (INR 141-566/t) m-o-m, while a few grades increased by 1-4% (INR 236-884/t). Despite softer base bids across most grades, premiums over the base price rose by up to 5% (INR 100-1,400/t), indicating continued firm demand for select grades and limiting downside in ferro chrome offers.
• Ferro silicon:Ferro silicon prices remained unchanged w-o-w at INR 87,600/t ($915/t) in Guwahati and INR 87,100/t ($910/t) in Bhutan. Limited spot availability and firm end-user demand continued to support prices, with most producers in northeast India and Bhutan either sold out or focused on fulfilling existing orders.
• Improving sentiment in the stainless steel sector and limited willingness among producers to reduce offers further strengthened price resistance, keeping the market stable despite relatively subdued spot activity.

Semi finished

• Billet
  India’s Semi-finished steel market experienced significant price uptick amid firm bookings during the week ended 22 August 2026, with billet prices increase in major producing regions. As per BigMint’s assessment, domestic billet prices surged by INR 100-2,000/t ($1-21/t) w-o-w across major regions. Eastern, Central and Western region sees major spike during the week on the back of improved buying activity supported by improved demand and material movement towards neighboring regions. Rising raw material prices and cost of production stands the major reson behind the sharp escalation.
• Sponge iron
  Sponge iron prices too increased by INR 800-1,800/t ($8-19/t) w-o-w across major regions. Significant increase seen due to tighter availability of quality raw material and rising coal prices hampered production output from producers and created some shortage in the spot market leading to sharp increase in spot offers. However, total sponge iron bookings during the week remained below the previous week’s total volume, indicating sharp price increase has also increased buyer’s caution.
  India’s DRI export market continues to sharpen, tracking the continuous increase in domestic sponge iron prices amid limited buying interest from neighbouring countries. Pellet-based sponge iron offers to Nepal increased by $13/t w-o-w to $295/t CPT Raxaul, while CDRI/mix sponge iron offers increased by $15/t to $322/t CPT Raxaul. Offers to Bangladesh increased surged by $26/t to $338/t CPT Benapole.
• Pig iron
  SAIL-Bhilai Steel Plant (BSP) conducted a pig iron auction, with the entire offered quantity of 2,470 t booked at an average INR 38,200/t exw, up INR 200/t from the previous auction held on 21 July. In the previous auction, the full 4,940 t quantity was booked at INR 38,000/t exw.
  SAIL-Rourkela Steel Plant (RSP) conducted a pig iron auction on 20 August, with the entire offered quantity of 2,500 t booked at INR 37,600/t, up INR 50/t from the previous auction. This marks a clear improvement from the 14 August auction, when only 2,500 t of the 5,000 t offered was booked at INR 37,550/t, leaving the balance unsold.

Finished long steel

• IF-rebar:IF-route rebar prices increased by INR 800-2,500/t across major markets during the week, with the steepest hikes recorded in Jaipur and Raigarh, where prices rose by INR 2,500/t and INR 2,000/t, respectively. Buying activity remained good throughout the week, with traders actively stocking material in anticipation of further price increases. The upward price movement was supported by a sharp rise in sponge iron prices, along with higher iron ore and coal costs, which pushed up input and conversion costs for mills. The firming raw material complex, coupled with improved buying interest and limited mill margins, enabled producers to pass on higher costs through increased rebar offers. Mill inventories declined to around 8 days, while order booking visibility remained limited to 3–5 days, indicating continued near-term supply tightness.
• On a week-on-week basis, rebar prices increased by INR 800-2,500/t across key regions, with the steepest hikes recorded in Jaipur and Raigarh at INR 2,500/t and INR 2,000/t, 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 42,500-42,900/t exw Raipur and INR 46,300–46,900/t exw Jalna.
• Trade reference prices of heavy structural steel for the base size 150 mm channel stood at INR 45,000-45,500/t exw Raipur.
• Trade reference prices of wire rod stood at INR 44,200-45,000/t exw Raipur.
• BF-route rebar: BF rebar prices rose INR 700/t w-o-w to INR 53,900/t ex-Mumbai, supported by firm retail and project demand, with landed project prices at INR 54,000-55,000/t.
• Tight supply amid maintenance shutdowns and limited bookings is supporting prices, while higher raw material costs and mill price hikes indicate continued upward pressure.

Flat steel

• BigMint’s bi-weekly benchmark assessment for HRC (IS2062, Grade E250, 2.5-8 mm/CTL) in Mumbai increased by INR 700/t ($7/t) to INR 58,800/t ($614/t) w-o-w from INR 58,100/t ($607/t) as on 21 August from the previous assessment.
• Likewise, the benchmark assessment for CRC (IS513, Grade O, 0.9 mm/CTL) increased by INR 700/t ($7/t) w-o-w to INR 65,900 ($688/t) from INR 65,200/t ($681/t) as on 14 August from the previous assessment.
• India’s trade-level HRC prices edged up considerably, supported by a major domestic mill’s INR 500/t price increase, firmer mill indications and improved buying from downstream and CRC-linked segments. Mill allocations have shifted towards the automotive/B2B segment, with mills fulfilling around three-fourths of traders’ booked volumes, limiting fresh availability in the trader channel. Demand was average to above average, with improved buying interest, although procurement remained largely need-based amid cautious market participation.