Steel export prices are on an upswing. While prices of hot rolled coils have climbed $30 per tonne to $345 per tonne for the base commercial grade, prices of cold rolled coils are hovering around $440 per tonne, an increase of $15-20 per tonne over last month.

Galvanised product prices have increased $20-30 per tonne to $550-560 per tonne across different grades.

Domestic steel companies -- Tata Steel, Essar Steel, Jindal Vijaynagar Steel, Jindal Iron & Steel and Ispat Industries -- said the rise in international prices would be reflected in domestic steel prices in the next two months.

"Domestic steel prices will see a proportionate rise across all grades by November," an industry source said.

"Domestic steel prices normally follow international price trends. Also, there is tremendous pressure on steel companies to increase prices as input costs have risen significantly in the last few days," said Jayant Acharya, vice-president, marketing, Jindal Vijaynagar Steel.

Prices of iron ore, coke, metallics and scrap shot up in the international market in September and were expected to rise further, industry analysts said.

"Apart from input prices, international steel prices are determined by the demand-supply situation, and the global demand is firming up consistently. Therefore, this price increase will be sustainable," said a steel analyst.

"Steel exports from Russia have come down due to a rise in local demand, and with Chinese demand surging, international prices are expected to jump further in the next quarter," said an industry source.