en.Wedoany.com Reported - For the week ending June 12, 2026, BigMint's flagship India Steel Composite Index fell 0.6% week-on-week. Slow spot market trading led to further weakness in steel prices, while currency depreciation increased volatility in imported raw material markets and added to producers' cost burdens. Market buying on a need-to-purchase basis led to inventory buildup, particularly in long products, thereby impacting prices.
The flat steel index fell 0.3% week-on-week, while the long steel index dropped another 0.9% after declining 1.2% the previous week. New export orders in May and firm Chinese hot-rolled coil prices provided stronger support for flat products compared to long products. However, falling raw material prices and increased domestic supply following the completion of maintenance at major steel mills are exerting pressure on prices.
As of June 12, 2026, blast furnace rebar (IS 1786 Fe 550D, 1232 mm, BF route, Mumbai ex-works) prices fell to a five-month low, with the benchmark assessment at INR 52,900/tonne, down INR 2,100/tonne from INR 55,000/tonne on June 5. The price is on an ex-Mumbai basis at the distributor-to-dealer level, excluding 18% GST. The price correction was attributed to adequate inventory at the distributor level (25-30 days) and cautious procurement strategies in retail and project sectors. Demand remained need-based across regions, while weakening raw material prices and the price spread with induction furnace route rebar also pressured blast furnace rebar prices. The induction furnace rebar market weakened in tandem, with prices falling by INR 500-1,000/tonne across regions due to slow construction activity during the heatwave and low demand visibility. Slow orders kept market sentiment cautious, with mills reporting sales at 50-70% of production and inventory levels of 10-15 days across regions.
In flat products, as of June 9, the bi-weekly benchmark assessment for hot-rolled coil (IS2062, Gr E250, 2.5-8 mm/slit) fell by INR 100/tonne ($1/tonne) week-on-week to INR 58,300/tonne ($611/tonne), compared to INR 58,400/tonne ($612/tonne) on June 2. Over the same period, cold-rolled coil (IS513, Gr O, 0.9 mm/slit) prices remained stable at INR 65,200/tonne ($684/tonne). The assessments are on an ex-Mumbai basis, excluding 18% GST. Pre-monsoon demand remained weak, with market transaction prices influenced by cautious buying sentiment. Although distributors in northern India reported limited supply for certain thicknesses and sizes, the supply tightness failed to generate meaningful market momentum. Collection challenges continued to weigh on trading activity, restricting procurement to immediate needs. The automotive sector sent mixed signals; according to data from the Society of Indian Automobile Manufacturers (SIAM), domestic auto sales in April fell 5.2% month-on-month to 2.47 million units, while overall production declined 1.9%. Indian HRC export activity remained sluggish, with uncertainty over country-specific quota allocations under the EU's revised steel safeguard framework dampening European buying interest, while Middle East demand was also weak due to ongoing geopolitical tensions, high freight rates, and shipping disruptions. Export prices to both regions remained unchanged week-on-week.
Regarding the domestic-import HRC price spread, after surging in May due to increased pipe export demand, HRC imports appear to be declining again as the spread with domestic prices remains substantial. The spread with domestic HRC for FTA countries and China remained at INR 5,700-7,300/tonne in May, curbing imports. Raw material prices softened, with Indian imported coking coal prices falling $1/tonne week-on-week, while domestic iron ore prices continued to weaken, with BigMint's Odisha iron ore fines index (Fe 62%) falling $1.5/tonne week-on-week.
Looking ahead, long product prices may remain under pressure around the monsoon season, with construction activity directly impacted and inventory destocking expected to be slow. The impact of imported scrap price volatility due to currency depreciation has been largely offset by increased reliance on domestic scrap and sponge iron. In contrast, flat products are expected to maintain some stability, supported by firm coking coal prices, a wide spread with import landed costs, domestic manufacturing momentum, a potential brief uptick in exports in June ahead of the EU quota implementation on July 1, and reduced Chinese participation in key markets such as Southeast Asia and the Middle East.
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