Steel Prices Of Mid-Sized Mills Remain Volatile But Participants Are Optimistic

Mid-sized steel mills have observed a moderate demand for a couple of days. Despite low to moderate demand, the trade participants remain optimistic in terms of price movement in the coming days.

As per them, the mills have healthy orders for the coming few days and this might keep the prices higher. Once trade activities in the northern region resume full-fledged, which are currently slowed down due to the heavy winter, prices are likely to change.

A significant price rally through the primary mills was the key factor behind the bullish outlook for mid-sized (secondary) mills steel prices.  Ultimately, it will support the demand for mid-sized mills.

Along with the above factors, the price recovery in raw materials i.e. iron ore and pellets are pushing secondary steel mills to keep prices higher and adjust as per the market demand.

A few re-rollers (rebar and wire rod mills) based in central and eastern India stated that the dispatch of material that was booked on revised (higher) offers remains active. As they are packed with good orders, they are eyeing to further raise their offers in the coming week. It will largely depend on price movement in the northern region.

Also, the primary mills are running short of inventories. Most Odisha-based plants are packed roughly about 70 to 80 percent for the January 2023 orders of finished flat steel products. That is why a price hike is expected by the mid of January 2023.

As per the trade sources, these factors are likely to keep prices on the higher side of mid-sized steel mills.

Read more: Indian Flat Steel Prices Likely To Remain Strong