Steel Prices Firm Up as Post-Monsoon Demand Recovery Supports Market

Domestic steel prices are expected to remain firm in September due to post-monsoon construction activity recovery and supply constraints, according to a report by SBICAP Securities. The brokerage expects rebar prices to outpace HRC (hot rolled coil) price increases, leading to a further narrowing of the HRC-BF (Blast Furnace) rebar spread as supply constraints persist and domestic demand improves gradually.

The average BF-route rebar price rose 8.6% month-on-month to Rs 53,294 per tonne in August, snapping a three-month losing streak. This increase followed planned maintenance by several integrated steelmakers, which constrained supply, while expectations of improving construction activity supported demand.

India's steel consumption remained supportive, with finished steel consumption rising 6.5% year-on-year and 1% month-on-month to 14.4 million tonnes in July, according to Joint Plant Committee data cited in the report.