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Steel Prices Surge on Seasonal Demand; Coking Coal Jumps 10.5% on Aussie Rains

Domestic hot-rolled coil prices in India have increased by 2.4% week-on-week, driven by seasonal demand and inventory drawdown. Simultaneously, coking coal prices saw a sharp 10.5% surge due to supply chain disruptions from heavy rainfall in Queensland, Australia. The report also notes a mixed performance in the non-ferrous segment, with zinc and tin gaining while copper and nickel declined. Meanwhile, Chinese HRC prices edged higher on supportive monetary policies, despite underlying fragile domestic demand.

Key Points: HRC, Coking Coal Prices Rise on Demand, Supply Disruptions

  • HRC prices up 2.4% WoW
  • Coking coal surges 10.5% on Australian rains
  • Chinese HRC prices rise on supportive policies
  • Non-ferrous metals show mixed performance
3 min read

Hot-roiled coil prices rise on seasonal demand; Coking coal surges amid Aussie supply disruptions: IDBI Capital Report

Indian HRC prices rise 2.4% on seasonal demand. Coking coal surges 10.5% due to Australian supply disruptions, per IDBI Capital report.

"manufacturers quoted higher prices despite limited market activity in semi-finished steel segment."

New Delhi, January 21

Seasonal demand and improved inventory drawdown have pushed Indian Hot Rolled Coil prices upward, even as exports remain muted in the international market.

According to the latest sector update from IDBI Capital, domestic HRC prices increased by 2.4 per cent Week-on-Week (WoW) to reach Rs 52,000 per tonne. This trend in the ferrous segment comes at a time when coking coal prices have experienced a significant double-digit spike due to environmental factors affecting global supply chains.

The IDBI Capital report highlights that coking coal prices surged by 10.5 per cent WoW to USD 190 per tonne. This sharp increase is primarily attributed to heavy rainfall in Queensland, Australia, which disrupted the met coke supply chain.

Queensland is a critical hub for the sector as it produces approximately 85 per cent of Australia's total coal output. Similarly, the domestic semi-finished steel segment saw movement as Billet-Ex-Raipur prices increased by 4.5 per cent WoW to Rs 41,500 per tonne. This rise occurred as "manufacturers quoted higher prices despite limited market activity in semi-finished steel segment."

In the regional market, Iron Ore prices in Odisha saw a 1.9 per cent WoW increase to Rs 8,000 per tonne. This growth was "driven by a hike in OMCs base price and a recovery in downstream steel market."

Meanwhile, Chinese HRC prices rose by 1.7 per cent WoW to Rs 42,887 per tonne. The report notes that these prices were "aided by supportive monetary policies and targeted economic measures introduced in the domestic market," though domestic consumption in China remains fragile due to subdued demand.

The non-ferrous segment presented a mixed performance during the same period. While Zinc prices increased by 2.1 per cent WoW to USD 3,174 per tonne and Tin prices climbed by 5.2 per cent WoW to USD 47,914 per tonne, other metals faced downward pressure. Copper prices decreased by 1.3 per cent WoW to USD 12,865 per tonne as "China released weak macro data raising concerns over future demand." Nickel prices also saw a marginal decline of 0.7 per cent WoW, settling at USD 17,390 per tonne.

In the energy sector, Brent crude prices increased by 0.6 per cent WoW to USD 64 per barrel. The report attributes this movement to the de-escalation of the "Iran-US geopolitical scenario."

In contrast, Natural gas prices remained flat WoW at USD 3.4 per MMBtu. Aluminum prices also held steady at USD 3,143 per tonne, following a reported 29 per cent surge in warehouses by the SHFE, which signals a "near term supply comfort." Lead prices remained unchanged at USD 2,000 per tonne.

- ANI

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Reader Comments

S
Sarah B
Interesting analysis. It shows how interconnected global commodity markets are. Heavy rain in Australia pushes up costs for Indian steelmakers. Hope the seasonal demand holds up to support these price levels.
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Arjun K
Good to see domestic demand picking up! 🚀 This price rise, if driven by real consumption in construction and auto, is a positive sign for the economy. But we must be cautious - if it's just inventory refilling, the trend might not sustain.
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Priya S
As a small-scale fabricator, this news is worrying. Our raw material costs are going up every week, but we can't pass on the full increase to customers. Profit margins are getting squeezed badly. Need some policy support.
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Vikram M
The report mentions "manufacturers quoted higher prices despite limited market activity." This seems a bit speculative. Hope it doesn't lead to artificial inflation. The authorities should keep a watch.
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Karthik V
China's fragile domestic demand is a key point. If their stimulus doesn't work, global metal prices could correct sharply. Indian companies should hedge their bets and not overstock at these high prices. Jai Hind!

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