Indian Steel Market Remains Supported During The Week 9 Of 2023

Moderate demand amidst price revisions through primary mills has slightly changed the prices of mid-sized mills during the ninth week (25 February to 4 March) of 2023.

As per industry experts, prices and demand slightly fell in the first half of the ninth week, although, they recovered later. During the week, supply was maintained by both primary and secondary mills. However, due to average demand, prices remained range-bound, and a hike is being reported in particular regions.

Steel Prices

TMT and billet prices change by Rs 100-500/ton in major locations of central and east India. However, in south India, west India, and north India, a surge of up to Rs 1,000/ton was recorded, and a sharp hike of Rs 700-1,000/ton was recorded in a few locations of Maharashtra, west India.

The sponge iron market also recorded price fluctuation of Rs 100-500/ton in central India and east India, while the surge was reported in south India by Rs 100-400/ton, week-on-week.

Primary Mills Prices

After a significant rise in the past few weeks, primary mills’ long steel prices remained steady this week. However, the mills have sharply raised their flat steel prices by around Rs 1,000-2,000/ton during the week for early March 2023 orders.

Pending export dispatches, active domestic and export demand, and rising prices in the global market have resulted in a hike in flat steel prices.

As per industry experts, currently, primary mills have good orders. Additionally, the closing of the fiscal year is approaching, which generally boosts demand from distributors and major project works. Hence, there are chances that if demand remains active, steel prices are likely to remain strong, especially for primary mills, which largely supplies material to government projects and a big proportion for exports.

Prevailing TMT Offers

Currently, primary mills’ TMT offers have been recorded at around Rs 61,000-62,000/ton ex-works Mumbai and Delhi, while mid-sized mills’ secondary TMT prices are at around Rs 52,500-53,000/ton ex-Delhi and Rs 56,000-56,500/ton ex-Mumbai.

Prevailing HRC Offers

HRC (1.8mm/IS2062) rates stood at around Rs 60,500-61,000/ton ex-Delhi NCR, Ghaziabad, and Faridabad. Prices for ex-Mumbai at Rs 62,000/ton, Ahmedabad, and Chennai at Rs 61,500/ton and 62,000/ton on an ex-yard basis.

Insight

Industry experts predict good demand in the coming days with an exception of the Holi festival, which usually slows down demand, production, and dispatch of steel as a large proportion of labourers are not in work mode. Thus, the overall trade chain is likely to be slow during the tenth week of 2023. After that, demand is expected to rebound with the resumption of trade activities in the spot market.

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