Internal prices for hot-rolled steel in India increased by approximately 4% over the week to 60,000 rupees per ton, which is 31% higher than the mid-December lows, reports Morgan Stanley. Prices for rebar also rose by about 5% over the week to 51,400 rupees per ton, which is 20% above mid-December levels.
Domestic prices for hot-rolled steel are currently trading at a premium of about 1% to import parity prices, including the protective duty, compared to a discount of 4% last week.
CFR iron ore prices in China with 61% iron content remained stable over the week at around $108 per ton. Domestic iron ore prices from NMDC are trading at a discount of about 60% compared to parity. Prices for Australian premium coking coal rose by about 1% over the week to $237 per ton, which is 7% higher compared to the previous month.
Domestic spreads on steel have increased by about 7% over the week, rising approximately 43% from the mid-December lows and trading about 12% above the peak in April 2025.
Inventory levels have decreased, and imports show a declining trend after the introduction of the protective duty, as reflected in the data from the Joint Committee of Factories. Morgan Stanley noted that the seasonally strong demand environment should absorb the increase in production following recent capacity expansions.
Shares of steel companies performed better in 2025, rising about 27% compared to the Sensex index's growth of 9%, supported by an interim protective duty of 12%. Since the beginning of the year, shares of steel companies have increased by about 4%, while the Sensex index has decreased by about 14%.