Steel prices hit 5-year low! Value drops sharply; top factors for steep fall
Domestic steel prices have fallen to a five-year low, trading between Rs 47,000 and Rs 48,000 per tonne, based on BigMint market data.Several factors have influenced these prices. Rising imports, weak export demand and oversupply in the global market all contribute to the decline.Hot rolled coil (HRC) is priced at about Rs 47,150 per tonne. Meanwhile, rebar (TMT) trades for Rs 46,500 to Rs 47,000 per tonne in the wholesale market.The last time prices were at similar levels was in 2020, when HRC and rebar were at Rs 46,000 and Rs 45,000 per tonne, respectively, amid the COVID-19 pandemic slowdown.India’s steel exports have dropped sharply as countries like China push aggressive export volumes, while imports continue despite government measures to curb them.The Ministry of Steel has called for an “open house” meeting on October 27 in New Delhi to discuss steel import issues with industry stakeholders. The Reserve Bank of India (RBI) has pointed out the rise in steel imports. This increase is mainly due to lower import prices. The RBI has called for policy support to improve the competitiveness of domestic steel production.India imported 0.79 million tonnes (MT) of finished steel in September 2025, compared to 0.69 MT in August of the same year. India has been a net importer of steel for the sixth consecutive month.Compared to September 2024, shipments from China, Japan, Vietnam, Thailand, and Taiwan decreased, while imports from Korea, Russia, and Indonesia increased.India remained a net importer in the first half of FY26. Inbound shipments surpassed exports by 0.47 MT, even though export volumes rose by 40% to 4.43 MT.While finished steel prices have fallen, raw material costs have not declined proportionately. Iron ore remains stable at Rs 4,800–5,000 per tonne, a one-year low and coking coal trades near USD 205/tonne CFR, a one-month low.According to BigMint, mill margins are likely to stay under pressure in the October to December quarter because of high input costs and weak selling prices. Steel prices are expected to remain low in the near term due to high inventories, weak demand, and seasonal factors. However, further price drops may lead to production cuts in the coming months.
