Week 17 Of 2023: Is Indian Steel Market Witnessing A Low Response?

The domestic Semi-Finished market observed a lack of spot demand with prices plunging by around Rs. 300-1,100/ton. However, Flat Steel makers managed to keep offers steady but low buying interest was observed on current offers, resulting in a price drop of Rs. 500-700/ton was seen by the end of the week. Also, the Finished Long market remained subdued, and prices plunged up to Rs. 1,200/ton pan India. The Indian Steel market witnessed a low response during week 17 (22 April 2023-29 April 2023).

In this article, let’s dive deep into the Steel market and understand its weekly performance.

Steel Industry Movement

• Semi-Finished Market- During the week, the Semi-Finished market remained sluggish with limited inquiries and slow lifting of material at the plant site. As limited orders from the re-rollers end, the billet movement was affected. The Sponge Iron market was under pressure due to a demand-supply miss match. Southern and Central regions were majorly disturbed as a maximum price drop of Rs.1,000/ton was seen, which made buyers hesitant.

• Flat Steel Market- Despite fewer changes in the offers from the mills’ end, the domestic Flat Steel market remained firm. Mills were trying to keep prices almost steady due to the month-end approaching regardless of anticipation of a price correction by distributors. This led to a slow demand in the domestic market and procurement was happening on a requirement basis. The Global Flat Steel market noticed dullness as Chinese mills offering materials at cheaper prices.

• Long Steel Market- The secondary Finished Long market in India has witnessed a decline in TMT and Wire Rod prices during the week. The maximum fall of around Rs. 1,000-1,200/ton was noticed in Central and Southern regions (Including Chhattisgarh and Telangana). While rumors of a price correction of around Rs. 500/ton in primary TMT are doing rounds, major players are not willing to reduce prices during month-end. However, market participants are awaiting the price revision in the next month.

Steel Prices In India

• Primary mills’ TMT- Prices were reported at around Rs. 59,000-59,500/ton (SAIL and TATA) ex-yard Delhi and Mumbai.
• Pellet-based Sponge Iron- Prices were reported at around Rs. 29,100-29,200/ton ex-Raipur (down by Rs. 900/ton).
• Billet- Prices were at Rs. 45,600-45,700/ton ex-Raipur (down by Rs. 900/ton).
• Secondary TMT- Prices were reported at Rs. 49,800-49,900/ton ex-Raipur (down by Rs. 1,000/ton)
• Secondary Wire Rod- Prices stood at Rs. 49,900-50,000/ton ex-Raipur (down by Rs. 1,200/ton).

Market Outlook

Market participants are waiting for next month’s price revision, buyers are currently following a cautious approach and only placing orders as per their immediate requirements, resulting in bulk orders being held back. In addition, some major Flat Steel producers are undergoing scheduled capital repairs to upgrade their facilities, which may result in supply concerns for certain Flat Products in the market. However, the overall domestic Steel industry is expected to be less supported during this period.

OFB’s Insight

The Indian Steel market witnessed a sluggish performance during week 17th with low response and a lack of spot demand. While the Semi-Finished market observed a price drop, Flat Steel makers managed to keep offers steady but faced low buying interest. The Finished Long market remained subdued with prices plunging. Buyers are currently exhibiting a cautious approach and placing orders as per their immediate requirements. However, the overall domestic Steel industry is expected to be less supported during this period, and the market outlook remains uncertain.

Read more: What Is The Current Scenario Of Pig Iron Market In India?

For real time commodity prices, latest news, and insights, please download the all NEW and all FREE OfBusiness APP.