Mid-Sized Mills Steel Prices Decreased As Buyers Resist Higher Offers

The prices of mid-sized (secondary) steel mills have decreased by Rs 200-500/ ton, after a significant rise since the third week of November 2022. When the Indian government announced the removal of export duties on raw materials (and some steel products), the Indian steel market trends turned bullish. The prices started strengthening on a daily basis and in a month; they increased nearly by Rs 6,000-8,000/ ton (including primary mills’ price).

With the constant surge in offers, the buyers have now turned cautious as the demand in the retail segments has lowered from some time. The key reasons behind this were reported higher offers, a sufficient volume of placed orders, and rising COVID infections globally, which seem to impact sentiments anytime. Thus, bulk orders have decreased since the beginning of 2023.

Meanwhile, the large mills continue to keep their offers on the higher side due to a shortage of some finished steel products. As per market experts, the mills received hefty orders from domestic buyers (for long steel products) in November 2022-December 2022 from the infra sector and construction sector for which lifting is active with them.

Large steel mills have further raised their offers by Rs 2,000-2,500/ ton for January 2023 deliveries, after a rise of Rs 3,000-4,000/ ton during November 2022-December 2022. Now, the market players are eyeing global trends, especially price movements in China, the EU, the Middle East, Vietnam, and Southeast Asia, which seems to be a trendsetter for the Indian steel market.

Also Read:- Here’s How The Change In Export Policy Has Affected The Indian Steel Industry And Upcoming Trends