Saturday 12 / September / 2026
New Delhi: Metal prices are strengthening, but increasing input costs could weigh on the recovery, raising concerns over whether the price gains can be sustained, according to a Centrum report.
The report said the metals sector showed improvement in August, with prices strengthening across major segments despite mixed demand conditions.
“With metal prices gaining momentum but input costs also moving higher, sustainability of price recovery will be key monitorable,” it noted.
Globally, hot-rolled coil (HRC) prices strengthened in the US and Europe, while prices in China remained relatively stable. The report said, “with the US and Europe prices rising ~3 per cent MoM each, while China’s export HRC prices stayed largely flat MoM.”
In India, steel prices also recovered, particularly rebar, which surged “nearly 10 per cent MoM (after falling sharply over the past three months) and ~12 per cent YoY, while HRC prices increased ~2 per cent MoM and ~19 per cent YoY.”
According to Centrum, the sharp rise in rebar prices was supported by planned maintenance shutdowns at integrated steel plants, suspension of fresh bookings, lower inventories, tighter supply and healthy demand.
Hot-rolled coil prices also benefited from limited availability, controlled dispatches and stronger demand from the Middle East, while domestic demand remained largely need-based.
On the input side, steelmaking raw material prices showed mixed trends in August, with iron ore prices declining and coal prices rising.
“Australian iron ore prices declined ~2 per cent MoM and ~3 per cent YoY, while NMDC had announced its second consecutive price cut of CY26 during the month. However, in September, NMDC raised lump prices by Rs 150/tonne while keeping fines prices unchanged,” it said.
On the production front, global crude steel output remained broadly stable year-on-year but fell around 4 per cent month-on-month to 149.2 million tonnes in July.
China’s output declined around 4 per cent year-on-year, while production in the rest of the world rose 3 per cent. India remained resilient, with crude steel output rising 3 per cent year-on-year and 2 per cent month-on-month to 14.4 million tonnes.
Among non-ferrous metals, aluminium prices recovered after two months of correction, rising around 3 per cent month-on-month to USD 3,251 per tonne in August and remaining 25 per cent higher year-on-year. Zinc and copper prices gained around 8 per cent and 6 per cent month-on-month, respectively, while lead and nickel rose around 1 per cent each.
