Centrum sees mixed Indian steel prices as monsoon hits longs

Domestic steel prices are heading in opposite directions. Long products face pressure from weak construction demand and high inventories during the monsoon, while flat steel holds up better on import curbs and steady raw material costs, according to a Centrum report.

The brokerage said global benchmarks moved in different directions in June. US hot rolled coil prices rose about 3% month-on-month, the eighth straight monthly gain. European HRC prices fell roughly 4% for the second consecutive month. China's export HRC prices slipped about 1% after six months of increases.

Indian HRC prices held largely steady, supported by safeguard duties on imports and firm global pricing. Long steel prices took a sharper hit. "Primary rebar declined ~9% MoM, giving back part of the strong rally seen since late 2025," Centrum said. The brokerage attributed the drop to weak construction activity, elevated inventories, aggressive trader discounts, and rising competition from secondary rebar producers.

The weakness has carried into July. Spot HRC and primary rebar prices were down about ₹210 a tonne and ₹3,020 a tonne, respectively, from June averages, Centrum noted.