Chinese demand drives domestic steel prices

After August 1, flat steel producers are planning another hike next month

Backed by strong demand from China, flat steel producers who raised prices at the beginning of August by up to Rs 3,000, one of the steepest in recent times, are mulling an increase next month.

Though it is not quite clear what the next round of increase would be, it is likely to be over Rs 1,000 a tonne. “The prices for the next month will be decided shortly,” a producer said.

If hiked by Rs 1,000 a tonne, then domestic hot-rolled coil (HRC) prices would come to around Rs 39,000 a tonne.

Since May, global HRC prices have moved