Posted on 21 Aug 2025
Indian hot and cold rolled coil prices remained unchanged on-week as trading slowed due to holidays, heavy monsoon rains and subdued seasonal demand, Kallanish learns from sources.
Markets were closed in India on 15 August for Independence Day, while torrential rains across the country last week disrupted logistics and trading activity. On Tuesday, India’s weather office issued a red alert for Mumbai and surrounding districts as floods paralysed the western region.
Some sources note stability is being supported by need-based buying.
“Import volumes have come down. With the expected GST [goods and services tax] change, auto and white goods sales should improve, which in turn will lift demand,” a trader says.
Last week, the government reportedly proposed axing the 12% and 28% tax slabs under the GST system and retaining the 5% and 18% slabs. 99% of items currently in the 12% slab will be moved to the 5% rate and 90% of goods and services in the 28% bracket will move to 18%. There will be no cess of any kind over and above the GST rates.
Looking ahead, traders expect mills could raise prices by INR 1,000/tonne ($11.5/t) in September, supported by pent-up demand after the monsoons.
Demand typically improves in September-October as construction and manufacturing activity normalises.
However, some market participants caution that prices may not have bottomed out yet. Any mill price hikes may struggle to hold if demand recovery underperforms.
Supply is also set to rise, with Jindal Steel commissioning a new furnace at Angul in September, doubling output there to 400,000t/month. AMNS India’s Hazira expansion, due in December, will add 4 million t/year of HRC capacity.
JSW Steel plans four to five months of plant shutdowns from September at Vijayanagar blast furnace No. 3 to enhance capacity while Jindal Stainless is also preparing to ramp up HRC capacity to 3mt/y at Jajpur, Odisha by January/February 2026.
Despite higher supply, traders remain optimistic that lower imports and a seasonal domestic demand rebound will help absorb volumes.
As of Tuesday, domestic HRC retail offers are steady at INR 49,500-50,000/t ex-Mumbai, delivered, for IS2062/E250 BR grade.
Prices are similarly unchanged at INR 48,500-49,000/t in the National Capital Region (north) and INR 49,500-50,000/t in Chennai (south).
CRC is flat w-o-w at INR 56,000-56,500/t ex-Mumbai. HR plate also remains unchanged w-o-w at INR 52,000-52,500/t. Galvanised coil is stable at INR 64,500-65,000/t and colour-coated coil at INR 70,500-71,500/t.
No fresh import offers were heard this week. Last week, a Korea-origin HRC cargo was booked under an advance licence (ADL) at $485/t cfr Chennai for September/October arrival, down from prior offers of $490-495/t (see Kallanish passim).
India’s FTAs with South Korea, Japan, Vietnam and ASEAN allow duty-free flat steel imports, though shipments typically attract the 12% safeguard duty unless imported under ADL.
“Theoretical” China-origin offers were assessed at $486/t fob China or $510/t cfr India, amid a lack of fresh offers.
Source:Kallanish
