Indian Steel Market Observed Limited Trade Activities But Expected to Recover Soon

The secondary steel makers in the domestic market slightly lowered their offers on 29 Dec 2022 on limited buying inquiries in the wake of the approaching new year holidays and limited activities in the northern region (Mandi Gobindgarh) in yesterday’s trade window.

Participants believe the fall in price is temporary as the majority of participants are out of the market and expecting the price recovery in the coming week, once the major Indian steel producers will announce the offers for Jan bookings, which seems to be stronger.

The prices of sponge iron, billets, and rebars saw a fall of Rs 200-600/ton in major locations on 29 Dec 2022. However, despite the price corrections across products, the pig iron makers have kept offers strong and sufficient deals were reported through the Durgapur-based plants at around Rs 41,300-41,600/ton ex-plant.

It is reported that the major pig iron producers in western India are planning to raise their offers for Jan deliveries on account of resuming exports and gaining steel prices.

Meanwhile, the rebars producers in central and eastern regions have raised gauge parity by Rs 500/ton to take advantage of an optimistic outlook. There is no significant inventory with mills and are planning to increase their offers further, once the participants turn active for the procurement.

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Iron ore and scrap prices edge up, although, buying activities were slow due to holidays. Industry sources mentioned that trade activities would resume in the second half of next week.

Also Read:- Indian Primary Steel Mills May Announce a Price Hike of up to Rs 2,000/ton for Jan 2023