The Indian Flat Steel market has witnessed stagnancy over the past week, accompanied by mixed price trends. The ongoing Flat Steel demand remains unaffected, instilling optimism among sellers for the upcoming days. This optimism is attributed to the rising Coking Coal and raw material prices in the domestic market, influencing market dynamics.
The trade level price movements have showcased variation when compared to mill offers. This variance can be attributed to adjustments in discounts and profit margins by distribution channels, providing insights into the pricing dynamics within the Flat Steel market.
Buyers have exhibited a cautious approach, maintaining lean stocks and engaging in trades primarily for urgent requirements. The buying activities have been relatively hectic in recent weeks, but caution prevails amidst buyers, potentially influencing market behaviour.
Distributors have played a critical role in managing material supply, sometimes charging prices higher than the mill’s offers due to limited stock availability. Manufacturers were seen focused on catering to the project sector, making sure of material availability followed by prioritizing bulk bookings and order placements in line with market demands.
Despite stable demand and mixed price trends, industry players maintain optimism. This optimism stems from various factors such as increasing Coking Coal and Iron Ore Prices, along with import constraints. The recent import deal for HRC further adds to the market’s intrigue.
While Indian mills have not reported any export offers, overseas buyers exercise caution, observing global price trends. As a result, the weekly HRC offers to Europe remained stable at $687-692/t CNF. Also, Indian mills were observed not offering for Dubai and Vietnam markets as well. Speculations of a Flat Steel price hike by up to Rs. 3,000/ton until month’s end have industry experts anticipating a potential price increase in the range of Rs. 1,000-1,500/ton in the coming days.
So far the imports are unviable but if the domestic HRC prices keep on rising then the imports may become viable. This may lead to the slowdown of the domestic Steel market in the peak season.
Foreseeing robust domestic demand, mills may consider raising prices due to material shortages, potentially leading to a supply crunch in HRC material. The shift towards value-added products, especially in the infrastructural sector, may further influence market dynamics and trade patterns.
PM plate price hike due to material shortages is likely in the coming weeks. This projection reflects the market’s response to evolving dynamics, particularly the challenges posed by limited material availability. Market participants are eagerly waiting for October month as they anticipate actual consumer demand to come from next month.
The Indian Flat Steel market continues to navigate through a complex landscape, with a careful balance between demand, pricing strategies, and supply dynamics. Market participants remain watchful, monitoring both domestic and global factors that could significantly influence the Flat Steel market trajectory.