- Coal prices surge on tight supply due to monsoon-led dispatch disruptions
- Finished steel gains on firmer demand, but cautious buying caps upside
The domestic steel and raw material market strengthened sharply in the week ended 29 August, supported by firm raw material costs, tighter availability and improved downstream demand. Prices of iron ore, pellets, coal, ferro alloys, semis and finished steel increased, while sponge iron and billet saw significant gains; however, cautious buying and limited spot activity capped further upside in some segments.
Iron ore, pellet
India’s Fe 57% iron ore fines export prices rose $3.5/t w-o-w to $57.5/t FOB east coast in the week ended 27 August, reaching a more than one-month high. BigMint’s Fe 63% pellet export index also increased by around $2/t w-o-w to $101/t FOB east coast in the week ended 26 August, its highest level since 29 July. Firmer seaborne iron ore prices and a modest recovery in the Fe 61% fines benchmark supported seller confidence, although weak export economics and limited fresh bookings capped the upside.
India’s iron ore concentrate prices edged up amid firm pellet prices and positive sentiment in Odisha. BigMint’s Fe 62% concentrate assessment rose INR 100/t w-o-w to INR 4,700/t ($49/t) ex-works Jabalpur, while Fe 63% offers were heard around INR 4,900/t ($52/t). Monsoon disruptions, including heavy rainfall, railway restrictions and transport bottlenecks, tightened availability and supported prices despite limited spot activity.
PELLEX, BigMint’s bi-weekly Fe 63% pellet index for Raipur, rose INR 200/t w-o-w to INR 10,800/t ($113/t) DAP on 27 August. Firm demand from sponge iron, pig iron and billet producers, higher input costs and tighter pellet availability supported the increase, while local offers stood at INR 10,600-10,700/t ex-works.
Coal
South African thermal coal prices strengthened sharply this week, with RB2 (5,500 NAR) ex-Paradip rising INR 700/t w-o-w to INR 12,500/t and ex-Vizag increasing INR 800/t to INR 12,500/t. RB3 (4,800 NAR) prices climbed INR 750/t to INR 11,550/t at Paradip and INR 800/t to INR 11,500/t at Vizag. Tighter cargo availability, higher freight and firmer sponge iron prices supported replacement costs, although buyers remained cautious at elevated levels.
Domestic coal prices strengthened further as monsoon-related SECL dispatch disruptions and limited availability of preferred grades increased replacement costs. BigMint assessed 5,000 GCV coal ex-Bilaspur at INR 7,400/t on 27 August, up INR 550/t w-o-w, while 4,500 GCV coal rose INR 150/t to INR 5,450/t. Strong SECL auction realisations, including Jhilmili G8 at INR 4,128/t and Amera G8 at INR 4,618/t against a INR 2,318/t base, further supported the market.
Met coke prices strengthened amid tighter availability and higher imported coke and coking coal costs. BF-grade domestic met coke in eastern India increased INR 1,200/t w-o-w to INR 37,000/t ex-Jajpur, while western India remained stable at INR 33,800/t ex-Gandhidham. Indonesian BF-grade met coke (65/63 CSR) rose $22/t to $335/t CFR India, supported by higher FOB offers, freight and stronger Chinese procurement. Australian PHCC also increased $16/t to $261/t FOB Australia, keeping coke replacement costs elevated.
Ferrous scrap
India’s imported scrap market showed a firmer trend during the week, supported by rising domestic prices and expectations of stronger post-monsoon demand. However, monsoon disruptions and the Raksha Bandhan holiday kept market activity limited.
Offers remained firm across major origins. European shredded was heard at $410-415/t and HMS at $345-360/t, while Australian HMS was indicated at $325-345/t and shredded at $355-375/t. US-origin shredded offers ranged from $415-420/t.
Fresh deal-making remained limited due to the persistent gap between supplier offers and buyer bids. Chennai and Kandla buyers continued to target lower levels, while suppliers remained reluctant to reduce offers amid firm domestic prices and expectations of stronger restocking demand after the monsoon. Overall, market sentiment improved towards the week’s end, although cautious buying continued to restrict transaction volumes.
Ferro alloys
Silico manganese
Silico manganese prices rose by INR 925/t ($10/t) to INR 74,100-74,600/t ($777-782/t) across key regions. The recent uptick in buying interest, coupled with limited spot availability, strengthened sellers’ bargaining power. Key producers are reportedly holding substantial bookings through mid-September 2026, further limiting near-term availability.
Export offers for 65-16 grades stayed unchanged at $886/t FOB Vizag/Haldia.
Ferro manganese
Ferro manganese prices rose by INR 800/t ($8/t) w-o-w to INR 79,000-79,100/t ($828-828/t) exw in Durgapur and Raipur. Improved domestic procurement and reduced availability of prompt material supported the price increase, allowing sellers to hold offers at higher levels.
Ferro silicon
Ferro silicon prices remained mostly steady with a slight decrease of INR 600/t ($6/t) w-o-w at INR 87,000/t ($912/t) in Guwahati and INR 87,100/t ($913/t) in Bhutan. Trading activity remained stable amid broadly balanced supply and demand, while most sellers were already booked, limiting material available for fresh spot sales.
Ferro chrome
Ferro chrome prices stayed unchanged at INR 119,000/t ($1,247/t) exw-Jajpur. Despite lower bids at the recent Vedanta-FACOR auction, sellers largely maintained firm spot offers, supported by a rise in met coke. At Vedanta-FACOR’s ferro chrome auction on 25 August, the entire offered quantity was sold. The H1 price for the Cr:57% min lumps was INR 117,600/t ($1,231/t) exw, INR 600/t ($6/t) above the base price but INR 2,250/t ($24/t) below the previous auction on 12 August. However, spot offers remained above INR 118,500/t ($1,240/t) exw, particularly for Cr:60% material.
Additionally, OMC is also scheduled to auction around 1,900 t of high-carbon ferro chrome across various grades and sizes on 29 August. The base price for the primary 100 t lot of Cr:6064% material has been set at INR 119,000/t ($1,246/t) exw.
A key development in the market was IMFA’s commencement of hot-metal tapping at its Kalinganagar ferro-chrome project, with commissioning of the second furnace scheduled for September 2026. Once operational, the project is expected to raise the company’s FY27 ferro-chrome capacity to 484,000 t/year.
Semi-finished
Billet: India’s semi-finished steel market witnessed a strong price rise during the week ended 29 August 2026, supported by firm bookings and higher production costs across major producing regions. As per BigMint’s assessment, domestic billet prices increased by INR 1,000-2,200/t ($10-23/t) w-o-w across major regions. The price rise was mainly driven by higher raw material costs, particularly sponge iron and melting scrap, which pushed up production costs. The recent increase in primary steel prices also provided additional support to billet prices. However, buying remained cautious as buyers closely monitored further price movements and downstream demand.
Metallics
Sponge iron: Sponge iron prices also increased by INR 1,200-2,000/t ($12-20/t) w-o-w across major regions, with Raipur witnessing a sharp rise of around INR 2,000/t w-o-w. The increase was mainly due to higher coal and iron ore pellet prices, which raised production costs for sponge iron manufacturers. However, total sponge iron bookings during the week remained lower than the previous week, indicating that the sharp price rise made buyers more cautious.
India’s DRI export market remained firm during the week, supported by the continued rise in domestic sponge iron prices, although buying interest from neighbouring markets remained subdued. Pellet-based sponge iron offers to Nepal increased by $9/t w-o-w to $304/t CPT Raxaul, while CDRI/mix sponge iron offers rose by $16/t to $338/t CPT Raxaul. Offers to Bangladesh also increased by $20/t to $358/t CPT Benapole. The rise in export offers mainly reflected firmer seller expectations amid limited buying interest.
Pig iron: SAIL’s Rourkela Steel Plant (RSP) conducted a pig iron auction on 26 August, with the entire scheduled quantity of 4,000 t booked at an average price of INR 38,760/t. The auction price was INR 1,160/t higher than the previous auction held on 20 August, indicating continued price support in the domestic pig iron market amid the overall firm trend in semi-finished steel prices.
Finished long steel
IF-rebar: IF-route rebar prices increased across major regions during the week, supported by firm raw material prices and moderate-to-healthy demand. Higher prices of key inputs, particularly coal and iron ore, continued to push up production costs. The shortage of raw pellets further strengthened sponge iron prices, adding to cost pressures for IF-route producers. With demand remaining relatively healthy, mills were able to pass on part of the increased production costs through higher rebar offers. Rebar prices are likely to remain firm in the near term, supported by elevated raw material costs, particularly sponge iron and pellets, along with relatively healthy demand. However, after the sharp recent price increases, further upside may be moderate, as higher finished steel prices could prompt buyers to adopt a more cautious approach.
On a week-on-week basis, rebar prices increased by INR 900-3,700/t across key regions, with the steepest hikes recorded in Jalna market, where prices rose by INR 3,700/t, 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 43,900-44,300/t exw Raipur and INR 49,400-50,000/t exw Jalna.
Trade reference prices of heavy structural steel for the base size 150 mm channel stood at INR 47,000-47,500/t exw Raipur.
Trade reference prices of wire rod stood at INR 45,500-46,000/t exw Raipur.
BF-rebar: Trade-level blast furnace (BF) rebar prices increased by INR 1,100/t w-o-w to INR 55,000/t ($576/t) ex-Mumbai on 27 August 2026, according to BigMint’s assessment. The increase was driven by improved buying activity, primarily from the retail segment, while demand from project customers also remained supportive.
Project prices were reported in the workable range of INR 55,000-56,000/t ($576-586/t) landed. Procurement activity from project customers improved, supported by higher booking volumes and expectations of stable-to-firm prices. A gradual recovery in construction activity also contributed to stronger buying interest.
Flat steel
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