OfBusiness Flat Steel Dailies

8th May’23

Price

• Indian mills have slashed Flat Product prices by Rs. 1,500-Rs. 2,000/ton for May. Market prices are already lower than last month’s closing, resulting in minimal difference. Flat Product prices are as follows:
• The prices of HRC across the markets were as follows: Ex-NCR/Delhi: around Rs. 59,500/ton, Ex-Mumbai: Rs. 61,000/ton, Ex-Ahmedabad: Rs. 61,000/ton, Ex-Chennai: Rs. 62,000/ton, Ex-Kolkata: Rs. 58,500/ton, Ex-Hyderabad: Rs. 62,000/ton.
• The prices of CRC are as follows: Ex-NCR/Delhi: around Rs. 64,000/ton, Ex-Mumbai: Rs. 65,000/ton, Ex-Ahmedabad: Rs. 64,000/ton, Ex-Chennai: Rs. 66,000/ton, Ex-Kolkata: Rs. 64,000/ton, Ex-Hyderabad: Rs. 68,000/ton.
• Offers for PM Plates stood at around Rs. 61,000/ton Ex-NCR/Delhi and Rs. 62,500/ton Ex-Mumbai.

Demand and Supply

• Flat Product demand is slow in the first week as major consumers delay procurement. Buyers hold off on HR Coil purchases for price corrections. Sellers maintain prices from last month. Major mills offer revised prices to projects and consumers, expecting closures this week. Price corrections may boost buying activity and slightly improve demand. PM Plate availability is limited due to mill shutdowns.

News

• The expansion plan for Rourkela Steel Plant (RSP) has been indefinitely deferred due to land hurdles. SAIL board approved expansion plans for Bokaro, IISCO, and another Steel plant, but the RSP proposal was postponed. SAIL aims to increase its capacity to 50 MTPA by 2030.

OFB’s Opinion

• Short-term outlook for Flat Products is negative due to weak demand. PM Plates may see stable demand but correction is expected. Buyers and sellers seek maximum gains, causing a standstill. Low buying in April due to expected price correction, but activity is to resume with corrected prices, potentially stabilizing prices this week.