Indian prices for hot rolled coils increased in the second half of April

Offers from Indian hot-rolled coil producers increased by $10/t to $685/t FOB from April 18-25, according to Kallanish. According to traders, this is due to the introduction of a 12% safeguard duty on imports of rolled steel on April 21. The absence of cheaper supplies from Southeast Asia allows local producers to dictate terms to buyers of hot-rolled coils.

In addition, the price increased due to a reduction in supply. In particular, in April, JSW Steel’s Dolva plant reduced production by about 40-45%, or 120-130 thousand tons per month. In March, Tata Steel in Jamshedpur shut down its blast furnace for 2 months for repairs, removing another 200-250 thousand tons of rolled products from the market.

Demand for hot-rolled steel from the Indian automotive industry remains high. In January-March 2025, sales of new cars in the country increased by 2.4% y/y – to 1.162 million units. At the same time, starting from April 1, leading automakers raised prices to compensate for rising costs, in particular, for the rental of automotive products.

This is not expected to lead to a decline in sales. According to the Society of Indian Automobile Manufacturers (SIAM), a two-stage reduction in the base rate by the Reserve Bank of India and the government’s reduction in personal income tax in fiscal 2025-2026 will stimulate the purchasing power of the population.

Offers for hot-rolled steel in Japan remained unchanged during the month, remaining at $620/t FOB as of April 28.

Inquiries from producers of cold-rolled coils in the Nordic region remained at €725/tonne EXW from April 18 to 25. Since the beginning of the month, the price has risen by €15/t. Traders note low buying activity in April across Europe due to the Easter holidays.

It is worth noting that the European automotive industry has not yet supported the growth in demand for rolled steel. In January-March, registrations of new cars in the EU decreased by 1.9% to 2.725 million units, according to the Association of European Automobile Manufacturers ACEA.

In the United States, quotations for heavy-duty rental in April remained unchanged at $1162/t EXW. Earlier it was noted that prices for hot-rolled coils began to decline in the North American market. It is likely that prices for hot-rolled coils will go in this direction in May.

As reported, the Indian Ministry of Finance has approved an additional 12% tariff on imports of steel products. It will not be applied if the import price is below a certain threshold.