Indian Domestic Steel Market Witnesses Price Fluctuations Amid Subdued Demand WoW

The Indian domestic Steel market experienced significant price fluctuations in week 20 (13 May 2023 to 20 May 2023). Initially, the prices surged due to a scarcity of Scrap materials, prompting buyers to engage in bulk bookings. However, prices began to soften by the weekend as raw materials rates decreased. In this article, let’s have a look at how the steel market performed in the last week.

Market At A Glance

• Semi-Finished

The Semi-Finished Steel market exhibited volatility during the week, with prices fluctuating in the range of Rs. 100-900/ton on a weekly basis. In the first half, prices witnessed a notable rise of up to Rs. 1,000/ton, lasting for three days. This price rise was accompanied by increased inquiries and healthy transactions for sponge iron and billets.

• TMT & Wire Rod

The Finished Long Steel market, including TMT and wire rod, experienced fluctuating prices during the week, with variations of Rs. 200-800/ton. Although healthy transactions were observed initially, sellers are now eagerly awaiting stability in this highly volatile market. The current offers for TMT from secondary mills stand at Rs. 52,700/ton ex Delhi NCR.

• Flat Steel

The Indian HRC and CRC markets remained sluggish throughout the week due to subdued demand. Limited buying and trading activities compelled sellers to reduce prices in the domestic market. HRC and CRC prices plunged by approximately Rs. 1,000-2,000/ton compared to the previous week, currently standing at Rs. 59,000/ton and Rs. 63,500/ton ex-Delhi, respectively.

 Challenges- The HRC segment is facing export challenges, primarily due to Chinese mills continuously reducing export offers in the international market. This situation raised concerns within the domestic market. Additionally, demand from the European region remained low due to inventory accumulation and a lack of consumption improvement.

Market Outlook

The Indian Steel industry is expected to face both challenges and opportunities. With the volatility in Steel prices, including the Semi-Finished and Finished Long, market participants now require a careful watch over the movement for strategic decision-making. In the flat product segment, the industry hopes for an upturn in demand and a stabilization of prices in the near future.

OFB’s Opinion

The Indian domestic Steel market witnessed price fluctuations driven by factors such as scarcity of Scrap materials, reduced raw material prices, subdued demand, and export challenges. The market outlook will depend on the resolution of these issues, as well as the overall economic conditions and global steel market dynamics. Industry players will need to adapt to these challenges and seize opportunities to ensure growth and stability in the Indian Steel market.

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