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 and supply constraints, according to a report by SBICAP Securities. The brokerage firm expects rebar prices to outpace hot rolled coil (HRC) price increases, leading to a narrowing of the HRC-BF rebar spread.

The average BF-route rebar price rose 8.6 per cent month-on-month to Rs 53,294 per tonne in August, while the HRC-BF rebar spread narrowed to around Rs 5,280 per tonne from a 42-month high of about Rs 8,800 per tonne in July.

India's steel consumption remained supportive, with finished steel consumption rising 6.5 per cent year-on-year and 1 per cent month-on-month to 14.4 million tonnes in July. Steel exports rose 44.1 per cent year-on-year to 0.7 million tonnes, while imports increased 9.5 per cent to 0.7 million tonnes.