Indian Mid-Sized Steel Mills' Prices Increase In The Seventh Week of 2023

Mid-sized steel mills’ prices in India saw a constant surge in the seventh week (11 to 18 February) of 2023. With the sharp surge in prices, the current offers stand over two-weeks-high, as the same range was last recorded during the end of January 2023.

The prices changed primarily due to demand recovery with the mid-sized mills. Hence, with improved demand, supply and demand have matched this week, against the higher selling pressure last week, with the majority of mid-sized (secondary) steel mills. The trends turned optimistic as prices moved upwards in the northern region, particularly in Punjab.

Also, active response in the recent OMC’s auction for iron ore has fuelled the market with bullish trends, resulting in continued price rises. Overall, the surplus availability of stock with secondary mills vanished with improved demand and dispatch of the materials.

Increase in Prices

TMT and billet prices saw a surge of Rs 1,000-2,500/ton in major locations of India, and the sharpest rise recorded across regions except in west India by Rs 2,000-2,500/ton. Sponge iron prices also saw a hike of up to Rs 2,000/ton, week-on-week.

Primary Mills

After a significant rise in the past few weeks, primary mills’ long steel prices remained stagnant this week. Industry experts have reported that primary mills’ supply remained strong and continued active demand, resulting in a firm price range. However, the prices of flat steel products declined during the week, and the overall fall is recorded about Rs 2,000-2,500/ton from the peak levels of 2023.

The prices of flat steel declined on account of slow demand and imports of the material at a competitive price, which recently landed in India and offered in the market at lower prices against the offers of domestically produced material. Hence, this has turned trends negative, and ultimately, the majority of buyers held back future orders, and the prices started softening recently.

Prevailing TMT Offers

Currently, primary mills’ TMT offers (long steel product) have been recorded at around Rs 63,000-63,500/ton ex-works Mumbai and Delhi, while mid-sized mills’ secondary TMT is around Rs 54,000-54,500/ton ex-Delhi and Rs 56,500-57,000/ton ex-Mumbai.

Current HRC Offers

In the case of flat steel, offers for HRC (hot rolled coil) steel stand at around Rs 58,500-59,000/ton ex-works Mumbai, and Rs 59,000-59,500/ton ex-works Delhi through the primary mills. Prices are exclusive of GST.

Insight

The prices of mid-sized steel mills surged in the seventh week of 2023 in India due to demand recovery and active response in recent iron ore auctions. TMT and billet prices increased, while sponge iron prices saw a hike. Primary mills’ prices remained stagnant for long steel products due to active demand and supply, but flat steel products’ prices declined due to slow demand and imports at a competitive price.

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