India's Domestic Semi-Finished Steel Market Remains Uncertain, Are Prices Affected?

Indian Semi-Finished Steel market has experienced significant volatility in recent times, primarily due to poor lifting and subdued demand. Throughout May 2023, the market has witnessed downward price pressure, leading to declined Billet and Sponge Iron prices across various regions in the country. The limited inquiries and low buying interest among market participants have resulted in sellers reducing prices. This lack of demand has triggered a downward trend in the market. Let’s explore the current market scenario.

Current Price Movement

Billet and Sponge Iron prices have been adversely affected, resulting in a price correction. On a weekly basis, the Billet prices plunged up to Rs. 1,000/ton with a major fall noticed in Raipur, Chennai, and Hyderabad. Additionally, the Sponge Iron market also saw a price correction in the range of Rs. 300-1,000/ton pan India with a maximum fall observed in Ramgarh and Southern regions, assessed by Ofbusiness.

• Billet Price:
  • Ex-Mandi: Rs. 47,350/ton
  • Ex-Durgapur: Rs. 43,600/ton 
  • Ex-Raipur: Rs. 43,000/ton 
  • Ex-Chennai: Rs. 45,550/ton 
  • Ex-Hyderabad: Rs. 44,200/ton
• Sponge PDRI:
  • Ex-Durgapur: Rs. 26,500/ton 
  • Ex-Raipur: Rs. 27,650/ton 
  • Ex-Ramgarh: Rs. 26,450/ton 
  • Ex-Hyderabad: Rs. 28,500/ton

Market Outlook

Despite the prevailing market challenges, India’s domestic Semi-Finished Steel market outlook remains unpredictable due to the evolving market conditions. 

OFB’s Insight

The Indian domestic Semi-Finished Steel market faced significant fluctuations due to weakened demand, leading to decreased prices. With a limited number of inquiries and low buying interest, sellers were compelled to lower prices to align with the demand-supply dynamics. Market participants are closely monitoring domestic trends and mill strategies in response to these conditions.

Read more: Indian Stainless Steel Market Maintains Stability Amid Fluctuating Nickel Futures

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