Indian Steel Prices Remain Strong Despite Low Trade Activities During The Tenth Week Of 2023

Despite a sluggish demand due to the festive holidays during the week (March 4-March 11) of 2023, mid-sized steel mills in India experienced a slight surge in steel prices. The demand was low, and the dispatch of materials negatively impacted the trade. Also, the inventories of finished steel products improved with most of the mid-sized steel mills.

Supply And Demand

During the week, both primary and secondary mills maintained the steel supply. However, the demand was slow, which kept buyers cautious. Even when the festival mood ended in the market, buyers who procure material from mid-sized plants have put their future bookings on hold and are waiting for the full resumption of trade activities.

Prices

Despite the low demand, mid-sized steel mills’ prices saw a surge. TMT and billet prices saw a surge of Rs 200-900/ton in major locations, with a major hike in central, eastern, and western India by Rs 400-900/ton. However, in the southern region, the prices were more or less firm with a slight change during the week. The sponge iron market recorded price fluctuation of Rs 100-300/ton in central, eastern, and southern regions week-on-week.

Primary Mills

As per the market experts, primary mills decreased their TMT offers by Rs 500-1,000/ton during the week. However, flat steel prices hiked by around Rs 500-750/ton through the mills during the tenth week of 2023. Despite the primary mills’ long steel (TMT) price correction, flat steel prices remained supported due to improved export realizations and active domestic and export inquiries with sufficient orders.

Prevailing TMT Offers

For the tenth week, primary mills’ TMT offers (for 10 to 25 mm) have been recorded at around Rs 61,000-61,500/ton ex-works Mumbai and Delhi, while mid-sized mills’ secondary TMT was around Rs 53,000-53,500/ton ex-Delhi and Rs 56,500-57,000/ton ex-Mumbai.

Prevailing HRC Offers

For the tenth week, HRC (1.8mm/IS2062) rates stood at around Rs 61,000-61,250/ton ex-Delhi NCR, Ghaziabad, and Faridabad. Prices for ex-Mumbai and Ahmedabad were at Rs 61,500-62,000/ton and Chennai at Rs 62,000-62,250/ton on an ex-yard basis.

Future Prospect

The market experts expect demand recovery as the festive mood ends and with the return of labourers from their villages, major construction work will resume in full swing, ultimately this will improve steel consumption and demand. Additionally, strengthening prices in the international market are likely to influence Indian suppliers to keep prices higher in the coming days.

Insight 

Despite the slow demand during the tenth week of 2023 due to the festive holidays, Indian steel prices remained strong. Mid-sized steel mills’ steel prices saw a surge, and primary mills lowered their offers, but flat steel kept prices supported. With the festive mood ending, market experts expect demand recovery in the coming week, and international market prices are likely to influence Indian suppliers to keep prices higher.

Read more: Primary Mills TMT Price Movement In February 2023