Limited Demand Weighs On Indian Steel Prices During Week 11 of 2023

Despite the festive season ending in the country, finished steel products’ demand remained weak from 11 March 2023-18 March 2023. This led to a downtrend in mid-sized mills steel prices. In this article, we will explore more about Indian steel prices of the 11^th week of 2023.

Prices, Supply and Demand

• Primary Steel Mills’ Prices- Following the improved supply and low-to-average demand, the primary mills’ TMT prices dropped by around Rs 500-1,000/ton week-on-week in major locations. Flat steel spot prices also moved down up to Rs 1,000/ton due to offered trade discounts by traders and distributors.

• Mid-sized Steel Mills’ Prices- Mid-sized steel mills’ prices recorded a fall of Rs 500-1,500/ton for TMT and billet. The sharpest fall was recorded in south and west India, where prices fell by Rs 1,000-1,500/ton.

• Sponge Iron Prices- The sponge iron market also recorded a price fall of Rs 500-1,000/ton across regions week-on-week. The major decline of Rs 700-1,000/ton was recorded in east India. The prices in the east region (West Bengal) fell sharply due to a power supply cut in a few steel plants at the beginning of the week. This led to a sharp price correction due to lower sponge iron consumption.

• Pig Iron Prices- The pig iron market recorded negative price directions as prices in central and east regions recorded drop of Rs 1,000-1,500/ton, week-on-week, due to sufficient supply and decline in steel prices.

• Demand And Supply- Supply continued to be good from both primary and secondary mills in terms of finished long steel products. Hence, this exceeded the supply again the spot demand in the market, leading to a price decline.

• Flat steel products supply was maintained, but distributors announced trade discounts due to weak sentiments, resulting in flat steel products prices drop week-on-week.

Prevailing TMT Offers And Prospects

• Prevailing TMT Offers- Primary mills’ TMT prices (for 10 to 25 mm) were recorded at around Rs 60,000-60,500/ton ex-yard Mumbai and Rs 61,000-61,500/ton ex-yard Delhi. Mid-sized mills’ secondary TMT prices were around Rs 54,000-54,500/ton ex-Delhi and Rs 56,000-56,500/ton ex-Mumbai.

• Prevailing Flat Steel Offers- For the 11^th week, HRC (1.8mm/IS2062) rates stood at around Rs 60,000/ton ex-Delhi NCR, Ghaziabad, and Faridabad. Prices for ex-Mumbai, Ahmedabad, and Chennai were around Rs 61,000/ton on an ex-yard basis. Meanwhile, CRC prices were reported at around Rs 65,000/ton ex-Delhi NCR, Rs 66,000-66,500/ton for Mumbai and Chennai, and Ahmedabad on an ex-yard basis.

• Future Prospect- Market experts believe that demand should find support as the festive mood ends in the country and due to the closing of the fiscal year. Construction activities are generally full-fledged during this duration. Additionally, the rising scrap and steel prices in the international market are likely to support Indian steel prices.

Insight 

The Indian steel market is currently facing limited demand, leading to a downtrend in mid-sized mills steel prices. However, market experts believe that demand is likely to find support soon. With construction activities in full swing and rising scrap and steel prices in the international market, Indian steel prices may see an upward trend in the coming weeks.

Read more: Flat Steel Market: Minor Correction And Potential For Future Price Hike