Week 16 Of 2023: What Was The Performance Of Steel Industry In India?

The Indian Steel market witnessed a low response during week 16 (15 April 2023-22 April 2023). The domestic Semi-Finished market experienced slow demand with prices dropping in the range of Rs. 200-500/ton, the Flat Steel market remained stagnant with moderate demand. Meanwhile, the secondary TMT market was under pressure, and prices decreased by Rs. 300-1,000/ton. Let’s dive deep into the Steel market and understand its performance in depth during week 16^th.

Performance Highlights

• Semi-Finished Market- During the first half of the week, the Semi-Finished market remained supported, while in the latter half, prices began to fall due to limited inquiries in the spot market. Billet movement was affected due to selling pressure and increasing inventory levels in the Finished Longs segment. However, the response for Sponge Iron was stable in the southern market as sellers were seen as a little optimistic regarding the market regain.
• Flat Steel Market- The domestic Flat Steel market remained stable, with mills booked with ample orders for HR Coils and PM Plates. SAIL RSP’s new HR mill was booked with 2 lac tons of HR coils, out of which 66,000 tons have been supplied till 20^th April 2023. Pending orders are expected to be fulfilled by the end of May 2023 or early June 2023, as per sources reported to Ofbusiness.
• Long Steel Market- Buyers for TMT seemed less interested due to uncertainty in the spot market. The prices for secondary TMT decreased by Rs. 300-1,000/ton pan India. However, the Jalna (Maharashtra) market recorded stability week-over-week basis.

Steel Prices In India

Although prices vary among different mills for primary TMT, the overall trend in the market has been subdued. Primary mills’ TMT prices were reported at around Rs. 59,000-59,500/ton (SAIL and TATA) ex-yard Delhi and Mumbai. For Pellet-based Sponge Iron, prices were reported at around Rs. 30,100-30,200/ton ex-Raipur (down by Rs. 400/ton). For Billet, prices were at Rs. 46,400-46,600/ton ex-Raipur (down by Rs. 200/ton). For secondary TMT, prices were reported at Rs. 50,500-51,000/ton ex-Raipur (down by Rs. 500/ton).

Market Outlook

Buyers are cautious due to uncertain Steel prices. Primary mills keep TMT offers unchanged despite low spot market demand. Distributors hope for a slight primary TMT price correction, while secondary TMT prices may struggle with excess inventory and limited future orders. HR Coil demand is lackluster while CR, colour-coated products, and PM Plates have better demand. PM plates are in high demand due to supply concerns and a large backlog. HR Coil prices may see a range-bound revision based on local supply and demand.

OFB’s Insight  

While the Indian Steel market has seen low responses in week 16^th, the market outlook remains cautious due to uncertain Steel prices. However, there is hope for a slight price correction in primary TMT, while PM Plates are in high demand. The Steel market’s performance is closely monitored and may improve in the future.

Read more: Indian Steel Pipe Industry Outlook: Will Supply Concerns Continue In Stagnant Domestic Pipe Market?

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