Here’s Why India's Steel Market Reported Mixed Response On Opening Of Fiscal Year 2023-2024

The opening of the fiscal year (FY) 2024 in India’s Steel market has seen a mixed response with Flat Steel prices finding support, while Long Steel product prices were relatively stable with a slight change in offers. In this article, we will delve deeper into the different factors that contributed to this price movement and the market outlook for the Steel market in India.

Primary Steel Mills’ Prices In India

• TMT Prices- Primary mills’ TMT prices were reported at around Rs 59,500-60,000/ton, ex-yard Delhi, slightly down by Rs 500-800/ton, week-on-week.

• HRC Prices- Primary mills’ Flat Steel (HRC) prices stood at Rs 60,000-60,500/ton, Rs 61,100/ton ex Mumbai, Rs 61,000/ton ex Ahmedabad and, Rs 61,500/ton ex Chennai. These prices up by Rs 700-800/ton, are ex-works and exclude GST.

Mid-Sized Mills’ Steel Prices In India

• Sponge Iron- For Pellet-based Sponge Iron, prices were reported at around Rs 30,400-30,500/ton ex-Raipur.

• Billet– For Billet, prices were at Rs 46,400-46,600/ton ex-Raipur.

• TMT- For TMT, prices were reported at Rs 50,800-51,000/ton ex-Raipur.

• Wire Rods- For Wire Rods, prices stood at Rs 50,800-51,300/ton ex-Raipur. The above prices reported a slight fluctuation of Rs 200-400/ton against the offers on 31 March 2023.
  

Steel Market Response And Inventory

Suppliers have reported a low to moderate response on floated offers for finished Steel products, leading to slight changes in prices as per demand in the spot market. Despite subdued demand, inventories of Finished Steel products are maintained, and no selling pressure is reported by manufacturers based in central and eastern regions.

Semis suppliers, especially sponge iron producers in the central region, reported an increase in inventory and are keen for major bookings, which are yet to come, as per them.

Market Outlook

The market experts are expecting uncertain price movement till the demand recovers in the spot market as a liquidity crunch persists. As per the experts, once payments resume for the new fiscal year for major construction works, Steel demand and prices are likely to react accordingly.

Insight

The opening of FY 2024 has seen a mixed response in India’s Steel market. Flat Steel prices have found support, while Long Steel prices have been relatively stable with a slight change in offers. Mid-sized Steel mills have seen fluctuating prices, while primary mills’ Long Steel prices have slightly fallen, and a surge has been reported in the same proportion in Flat Steel products. Having said that, the Steel demand and prices are expected to improve in the future with the hope of payments resuming for major construction works.

Read more: Are Mid-Sized Mills In Durgapur Shifting To TMT Production For Better Margins?

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