Indian Flat Steel Market Remains Supported; Expect to Stay Stable

In mid-March, the Indian Flat Steel market was stagnant, with little movement until the last week of the month when demand picked up from domestic and global markets, especially from Europe. This uptick in demand resulted in sellers increasing their prices in the domestic market, as export volumes were strong. However, despite the market improvement, the export prices remained within a narrow range.

Price Hike Announcement

At the beginning of FY24, the major mills announced a price increase of Rs 1,000-1,500/ton for the month of April. This has led to a slight upward movement in the spot market immediately after the announcement.

Post revision- HRC offers stood at around Rs 60,000-60,500/ton ex-Delhi NCR, Rs 61,000-61,500/ton ex-Mumbai, Rs 61,000/ton ex-Ahmedabad, Rs 61,500/ton ex-Chennai, and Rs 59,000/ton ex-Kolkata. Meanwhile, CRC prices hovered at Rs 65,500-66,000/ton ex-Delhi NCR, Rs 65,500/ton ex-Mumbai, Rs 65,000/ton ex-Ahmedabad, Rs 66,000/ton ex-Chennai, and around Rs 64,500/ton ex-Kolkata.

Import Duty Postponed

Turkey has postponed the imposition of import duty until May 1 due to increased demand for container housing construction and additional HRC demand after the recent earthquakes. This news has given a ray of hope to the Indian Flat Steel Industry as Turkey is also one of the largest importers of flat steel from India. The fresh import duty, which was initially supposed to be imposed from 1 April 2023, will now come into force from 1 May 2023. These duties were increased in both HRC & CRC, whereas the duty on stainless steel remains unchanged.

Future Prospects

The Indian Flat Steel market is expected to remain supported and prices are likely to stay stable due to the resumption of projects in the new financial year. However, a sudden or continuous surge in Flat Steel offers in the domestic market may attract imports at competitive prices which may disturb the stability, as sources reported to Ofbusiness.

OFB’s Insight

The Indian Flat Steel market has remained supported on proactive order bookings with major plants, which maintained the balance between demand and supply. The postponement of import duty by Turkey has provided a further ray of hope to the Indian Flat Steel Industry. Overall, the future prospects of the domestic Flat Steel market look promising and some more price hikes are expected in the upcoming weeks if the same trend continues.

Read more: Indian Scrap Market Recovers, Supported By Slight Increase In Steel Prices

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