Metal Prices Shine Brighter, But Rising Input Costs Cast Shadow
Global metal prices have shown significant strength across various segments in August, indicating an improvement in the sector. However, rising input costs could pose a challenge to the sustainability of this recovery, according to a Centrum report.
The report noted that despite mixed demand conditions, price momentum improved, making raw material costs a crucial factor to watch in the coming months. Global hot-rolled coil (HRC) prices rose around 3% month-on-month in both the US and Europe, while China's export HRC prices remained broadly unchanged.
In India, rebar prices staged a sharper recovery, jumping nearly 10% month-on-month and 12% year-on-year after declining substantially during the previous three months. Domestic HRC prices increased around 2% from the previous month and were 19% higher year-on-year.
Centrum attributed the rebar recovery to planned maintenance shutdowns at integrated steel plants, tighter supplies, lower inventories, suspension of fresh bookings, and healthy demand. HRC prices also received support from controlled dispatches, limited availability, and stronger Middle East demand.