Today, amid coal price volatility, Indian steel manufacturers are negotiating a price increase for auto-grade steel. The proposed hike is Rs 2,000-3000 per tonne for hot rolled coils and Rs 4,500-6,000 per tonne for cold rolled coils. The finalization of these contracts is expected within a fortnight.

This move comes months after automakers initiated a substantial price hike across categories in April 2023 due to the transition to OBD-2 compliant vehicles. In the same month, automakers switched to quarterly contracts as a measure to manage price volatility.

For Q4 (January-March, 2023), mills enacted drastic price reductions on hot and cold rolled coils. This was a shift from the third quarter (October-December, 2022), which witnessed significant price cuts of Rs 4,000-5,000 per tonne across all categories.

The current proposal for a price increase indicates a potential reversal in the pricing trend observed over the past year. As the industry continues to grapple with market uncertainties and supply chain disruptions, these negotiations underscore the ongoing efforts to balance operational costs with market demand.