Indian Domestic Steel Market Performance During June Week 1

From 5 June 2023-10 June 2023 (Week 23 of 2023), the Indian Steel industry experienced volatility. As the week progressed, it received some support due to an increase in demand. To further stimulate buying activity, the primary mills announced price revisions for June 2023, prompting a temporary resumption of purchasing, as reported by OfBusiness. Additionally, the Chinese Steel market showed improvement signs in the beginning, which had a positive influence on the Indian domestic market, resulting in a slight tightening of supply.

Product Wise Market Sentiments

Here’s the Indian Steel industry’s product-wise market performance during the first week of June 2023:

• Semi-Finished- The Semi-Finished prices including Billet and Sponge Iron raised by 600-1,500/ton across various regions. The reason behind the price rise is attributed to the Chinese market rebound. The market participants resumed buying keeping in mind the current price trend as a bottom line. Also, the upcoming monsoon has sparked trading activities. 

• Rebar- The global Steel market has been experiencing a subdued trend with falling prices last month, leading primary mills to revise their offers:
  • Indian Primary TMT Mills- Price revisions for June 2023 with a price correction of around Rs. 3,000/ton have been announced.
  • Secondary TMT Market- It remained supported amid the Billet price rise. Week-on-week change shows a rise of around Rs. 500-1,300/ton in major markets, while Mumbai and Jalna remained firm. However, In the southern region, a downfall of Rs. 700-800/ton was seen. Also, pre-monsoon booking has been active.

• Structural Steel– Amid increasing Billet prices, mid-sized Structure manufacturers in India have raised their offers by Rs. 300-600/ton daily. Weekly data show a slight increase of around Rs. 300/ton in secondary Structure prices. In contrast, primary mills have reduced offers by Rs. 500-1,000/ton in response to market pressure. These mills remain optimistic that buying will pick up in the primary segment, leading to improved market conditions and higher demand.

• Flat Steel- The domestic market has been experiencing the effects of the ongoing decrease in international HRC prices, leading to an influx of imported Steel. This led to an opportunity for Indian buyers who have recently concluded HRC import deals, causing a sense of unease among sellers. Consequently, HRC and CRC domestic prices declined by approximately Rs. 2,000-2,500/ton compared to April 2023.

• Pipe- Despite firm demand, the Indian Pipe industry remained stagnant in May 2023. Manufacturers are encountering delivery challenges in certain segments due to concerns over the availability of raw materials. 

Prices 

Here are the prices of various steel products:

• Primary TMT
  • Ex-Mumbai: Rs. 53,000-53,500/ton 
  • Ex-Delhi NCR: Rs. 54,000-54,500/ton
  • Ex-Vizag: 51,500-52,000/ton

• Secondary TMT
  • Ex-Raipur: Rs. 48,000/ton
  • Ex-Delhi: Rs. 52,200/ton
  • Ex-Ahmedabad: Rs. 51,700/ton
  • Ex-Hyderabad: 50,700/ton

•  Primary Structure (100 x 50 Channel)
  • Ex-Durgapur: Rs. 54,500/ton
  • Ex-Chennai: Rs. 57,500/ton
  • Ex-Hyderabad: Rs. 56,000/ton

•  Secondary Structure (100 x 50 Channel)
  • Ex-Raipur: Rs. 50,800/ton 
  • Ex-Raigarh: Rs. 50,900/ton
  • Ex-Chennai: Rs. 53,300/ton
  • Ex-Hyderabad: Rs. 52,100/ton 

• Pipes
  • DI Pipes (100mm K7)- Rs. 1200-1220/meter (The prices are FOR basis within the radius of 800 km.)
  • MS ERW Pipe– Rs. 66-67/kg
  • MS GI Pipe (YST-210 grade)- Rs. 62-63/kg

OFB’s Insight

The Indian Steel market has shown some support recently. Price reductions by primary mills are anticipated to stimulate buyer activity for June 2023 procurement, potentially improving market conditions for Steel manufacturers. Pre-monsoon bookings have also provided a slight upward push. However, the arrival of the monsoon is expected to disrupt the Coal and Iron Ore markets, likely keeping raw material prices stable.

Read more: Pig Iron Market Update: Prices In Eastern India Unlikely To Surge Further

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