New Delhi, Sept. 12 -- Metal prices are strengthening, but increasing input costs could weigh on the recovery, raising concerns over whether the price gains can be sustained, according to a Centrum report.

The report said the metals sector showed improvement in August, with prices strengthening across major segments despite mixed demand conditions.

"With metal prices gaining momentum but input costs also moving higher, sustainability of price recovery will be key monitorable," it noted.

Globally, hot-rolled coil (HRC) prices strengthened in the US and Europe, while prices in China remained relatively stable. The report said, "with the US and Europe prices rising ~3 per cent MoM each, while China's export HRC prices stayed largely flat ...