Steel Market Update: Indian Primary Mills Revise Steel Prices

The global Steel market has been experiencing a subdued trend with falling prices, leading primary mills to revise their offers. The Indian primary players have announced price revisions for June 2023 with a price correction of around Rs. 2,500-4,000/ton.

Primary Steel mills have cut down Hot Rolled Coil (HRC) prices by around Rs. 2,000-2,500/ton and Cold Rolled Coil (CRC) prices by Rs. 3,500-4,000/ton, prices vary plant-wise. Whereas in TMT segment the primary mills have reduced prices by around Rs. 3,000/ton across various regions, as assessed by OfBusiness.. Let’s examine the elements influencing the market’s current state and market outlook.

Market Analysis

The international Steel market has been affected by weakened demand from China, causing prices to decline in countries like Japan, Vietnam, Europe, and the United States. The Indian market, too, has been impacted by this downward trend as Chinese Steel mills look to offload their excess Steel due to a shortage of customers domestically.

Prices

• The HRC offers are below:
  • Ex-NCR/Delhi: Rs. 58,000/ton 
  • Ex-Mumbai: Rs. 57,000/ton 
  • Ex-Ahmedabad: Rs. 58,000/ton 
  • Ex-Chennai: Rs. 61,000/ton
  • Ex-Kolkata: Rs. 55,500/ton
  • Ex-Hyderabad: Rs. 59,000/ton

• The CRC offers are below:
  • Ex-NCR/Delhi: Rs. 62,000/ton 
  • Ex-Mumbai: Rs. 63,500/ton 
  • Ex-Ahmedabad: Rs. 63,500/ton
  • Ex-Chennai: Rs. 65,000/ton
  • Ex-Kolkata: Rs. 61,300/ton
  • Ex-Hyderabad: Rs. 66,000/ton

Market Outlook

Given the sluggish demand and falling prices, primary mills are making efforts to stimulate market activity. The price reductions announced by SAIL and JSW Steel are expected to encourage buyers to initiate procurement for June 2023. This may help alleviate the subdued market conditions and create a more favorable environment for Steel manufacturers.

OFB’s Insight

The Steel industry is currently grappling with challenges such as reduced demand from China, falling prices, and increased competition from Chinese steel mills. However, the price revisions by major Indian Steel companies indicate a proactive response to the market conditions. With the anticipated increase in buyer activity following the price reductions, there is hope for a short-term improvement in market sentiment. The industry will closely monitor these developments and adjust strategies accordingly to navigate through the current market challenges.

Read more: Indian Scrap Market Lacks Support Despite Declining Imports

For real time commodity prices, latest news, and insights, please download the all NEW and all FREE OfBusiness APP