Indian Steel Prices Change During The Third Week Of 2023 On Low Demand

Regardless of sufficient finished steel orders reported with the majority of mid-sized plants located in central, eastern, southern and western regions, prices of mid-sized (secondary) steel mills declined during the third week of January 2023 on account of low to moderate trade activities.

The prices of semi-finished and finished steel products fell by Rs 100-1,500 /ton in a few major locations but prices upsurge in southern India. As per the market experts, the reason behind the higher finished steel prices of secondary mills was the significant price hikes announced by primary mills twice in January 2023 for a total of around Rs 2,000-2,500/ ton. The mills are planning for further hikes citing healthy orders and improved exports of flat steel products.

According to market experts, this ultimately supports the secondary finished steel market and a large share of manufacturers have sufficient orders. As per raw material price changes (sponge iron and billets), prices have been adjusted.

Shut Down

To ensure low industrial emissions during FIH Odisha Hockey Men’s World Cup 2023, approximately 21 sponge iron and steel plants in Kuarmunda and Kalunga (Odisha) have been ordered to shut down from 5 January 2023 to 28 January 2023.

Insight

In terms of outlook, the market experts are uncertain due to the expected increase in the supply of sponge iron from Odisha once the shutdown mills re-open, (which could put pressure on prices). The majority of experts are also waiting for the Union Budget announcement on 1 February 2023, before taking positions in the market.

Read more: Indian Pig Iron Prices Remain Volatile, Supported By Sufficient Orders And Measured Supply