OfBusiness Flat Steel Dailies |7th July 2023

Price

• The Flat Steel market remained stable yesterday. The prices in various markets are as follows:
• The HRC offers are below:
  • Ex-NCR/Delhi: Rs. 56,500/ton
  • Ex-Mumbai: Rs. 56,000/ton
  • Ex-Ahmedabad: Rs. 57,500/ton
  • Ex-Chennai: Rs. 58,500/ton
  • Ex-Kolkata: Rs. 55,000/ton
  • Ex-Hyderabad: Rs. 58,000/ton
• The CRC offers are below:
  • Ex-NCR/Delhi: Rs. 61,000/ton
  • Ex-Mumbai: Rs. 61,500/ton
  • Ex-Ahmedabad: Rs. 63,000/ton
  • Ex-Chennai: Rs. 64,500/ton
  • Ex-Kolkata: Rs. 62,000/ton
  • Ex-Hyderabad: Rs. 64,000/ton
• PM Plates prices stand at around Rs. 61,500/ton Ex-NCR/Delhi, and Rs. 61,000/ton Ex-Mumbai, respectively.

Demand and Supply

• The demand side remains stagnant with developers expressing interest but no progress. The critical supply side issue arises from maintenance shutdowns by major millers, impacting delivery schedules for both existing and new orders, which are now quoted with an 8-10 week timeline. This situation stabilizes market prices due to limited availability.

News

• JSW Steel plans to almost double its capacity to 50 million tons within three years, according to Chairman Sajjan Jindal. The company aims to rely solely on renewable power sources for its entire production of 50 million tons. Emphasizing sustainability, JSW Steel has formulated a comprehensive plan for this transition.

OFB’s Opinion

• Anticipated market correction delays order closures as supply-side improvement awaits millers’ production and delivery timeline enhancement. Expect improved demand once market correction anticipation subsides without significant alterations, leading to a more favorable outlook in the upcoming weeks.