Indian Flat Steel Prices Likely To Remain Strong

All the major Indian steel manufacturers (SAIL, JSPL, JSW, & TATA Steel) have enough HR coil orders from the domestic market. There has been an increase of 4 to 5 percent in prices across all flat steel products. Meanwhile, trade sources believe the mills may again increase their offers during the mid of January 2023.

The Key Factors Likely To Keep Prices Upwards

• Export orders: Export bookings have started after a long gap. A couple of mills have received orders cumulatively of around 60,000 tonnes for the export of PM plates, which will create a shortage of this product.
  
• Import bookings lessen: Fresh import bookings of flat steel products have come to halt with the rebound of prices in the global market. Hence, the buyers who were eyeing imported material, are now aggressive to book from domestic plants.
  
• Shortage of finished steel products: It was reported that the major steel manufacturers are running short of inventories of finished steel products. They don’t have stock of specific long steel products, due to which the premium is being charged by them. The mills have announced a hike of Rs 2,000-2,500 per tonne for January 2023 deliveries for Rebars and wire rods on account of healthy orders.
  
• Surge in export realizations: Inquiries from European nations have resumed now. Indian suppliers are also eyeing to keep prices higher for the next export orders; it ultimately will support domestic prices.
  
• Slowed down productions in SAIL: Rourkela Steel Plant (RSP) of SAIL has partially shut down some units inside the plant as per the directions of the Government of Odisha. It is for controlling the pollution keeping in mind the upcoming hockey world cup in January 2023. This will result in less steel production and a shortage of finished steel products. 
  Additionally, it will also impact the sponge iron prices across the state as many sponge iron mills have been advised in Odisha’s Kuarmunda and Kalunga Industrial hub to shutdown for the whole month of January 2023.
  
• Auto-grade CR coils: The demand for auto-grade CR coils in India is expected to increase during 2023 due to the increased production of automobiles which is expected to touch a four-year high. The semiconductor issue will be sorted as the Semiconductor Consortium proposed a $3 billion chip facility in Karnataka & $20 billion facility in Gujarat.
  
• High Volume orders with Pipe mills:  The large dia pipe makers including the major steel manufacturers are jampacked with pipe orders for the February 2023 and March 2023 deliveries. It is also creating a high demand for flat steel products. The major pipe mills have also raised offers in a similar proportion of HR coil rise for the January 2023 orders.

Read more:- Mid-Sized Mills Steel Prices Decreased As Buyers Resist Higher Offers