Indian Steel Market Closes on a Positive Note During The Last Week of 2022

India, the second-largest steel manufacturer in the world, has seen an  upward price trend  in the final week of 2022.

As a result of moderate to active demand and ongoing positive trends, the prices of basic raw materials increased by Rs 200–500 per tonne, while those of metallics, semi-finished goods, and finished steel products increased by roughly Rs 500–2,000 per tonne.

With enough orders in hand and greater margins, regional producers of semi-finished and finished steel were able to keep prices moving upward, especially for those who make sponge iron. Consequently, the market turned bullish due to positive tendencies.

Additionally, a few export agreements for vital raw materials like pellets have prompted manufacturers of sponge and pellets to hike their prices. Producers have been persuaded to maintain competitive bids by the slightly improved export realized, which increased by Rs 300–500 per tonne, week-over-week.

While the resumption of metallics exports after a long hiatus has in some ways strengthened trends of melting commodities (such as scrap, pig iron, and sponge iron), inventories in the domestic market have ultimately decreased as a result. Participants observed very few chances of negative price trends with a bulk export of pig iron.

Furthermore, the Indian primary mills have bolstered their proposals in the final week before the deadline, citing strong demand from the infrastructure and building industries, which account for a significant portion of India’s roughly over 50% steel consumption. The prices for January deliveries have already been disclosed by a few large mills, and the remaining ones are anticipated to follow suit and make their proposals in the upcoming week.

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