Indian Hot-Rolled Coil Prices Rise in Late April

Hot-rolled coil (HRC) prices in India climbed by $10 per tonne in the second half of April, reaching $685/t FOB between April 18 and 25, according to Kallanish. This increase follows the Indian government’s introduction of a 12% safeguard duty on imported rolled steel, effective April 21. Traders attribute the price hike to the reduced availability of lower-cost steel from Southeast Asia, which has allowed domestic producers to gain greater pricing power.

Supply constraints also contributed to the price rise. JSW Steel’s Dolvi plant cut production by 40–45% in April, equating to a drop of around 120,000–130,000 tonnes per month. Meanwhile, Tata Steel shut down a blast furnace at its Jamshedpur facility in March for a two-month maintenance period, removing an additional 200,000–250,000 tonnes of rolled steel from the market.

Demand remains robust, particularly from the Indian automotive sector. Between January and March 2025, new car sales rose by 2.4% year-on-year to 1.162 million units. As of April 1, leading automakers increased vehicle prices to offset higher production costs, including those linked to steel usage.

Despite the price hikes, no drop in car sales is anticipated. The Society of Indian Automobile Manufacturers (SIAM) expects demand to remain strong, supported by an expected two-stage reduction in the Reserve Bank of India's base interest rate and income tax cuts planned for fiscal year 2025–2026.

Globally, HRC prices remained stable in other regions. As of April 28, Japanese HRC offers held firm at $620/t FOB. In Europe, Nordic cold-rolled coil prices stood at €725/t EXW from April 18 to 25, up €15 since the start of the month. However, traders reported subdued buying activity in April due to Easter holidays.

The European automotive industry has yet to drive up steel demand. EU new car registrations fell by 1.9% year-on-year in the first quarter of 2025 to 2.725 million units, according to the European Automobile Manufacturers Association (ACEA).

In the U.S., heavy-duty steel rental prices remained steady at $1162/t EXW in April. However, HRC prices have started to decline in the North American market, with further downward pressure expected in May.

Separately, India’s Ministry of Finance confirmed the imposition of a 12% additional tariff on steel imports. This duty will not apply if the import price falls below a designated threshold.