OfBusiness Steel Dailies

Sponge Iron, Billet, TMT, Flat Steel

8th May’23

Price

• Indian Semi-Finished Steel market (Billet and Sponge Iron) remained low with prices fell by around Rs. 200-700/ton across various regions. Also, secondary TMT prices declined by around Rs. 800/ton pan India. Meanwhile, HRC offer was around Rs. 59,500/ton, and CRC was about Rs. 64,000/ton ex-Delhi NCR, respectively.

Demand and Supply

• Indian Steel trade market slows as buyers hold back due to expected price reductions. Despite primary and secondary mills operating at 90%, Steel demand remains lackluster.
• Flat Products face slow demand as major buyers postpone procurement. HR Coil purchases delayed for price corrections. Major mills adjust prices, anticipating closures. Corrections may stimulate buying and improve demand. PM Plate availability limited due to mill shutdowns.

News

• Steel ministry holds meeting with industry stakeholders on EU carbon tax. EU’s carbon border adjustment mechanism could impact India’s exports of iron, steel, and aluminum products to EU.
• Rourkela Steel Plant expansion indefinitely deferred due to land hurdles. SAIL approves expansion plans for Bokaro, IISCO, and another steel plant. Capacity target: 50 MTPA by 2030.

OFB’s Opinion

• Cash flow constraints and rising inventory levels anticipate May 2023 price correction in primary and secondary TMT markets. Primary prices to drop by around Rs. 500/ton, while secondary prices to decrease Rs. 500-1,000/ton.
• Flat Products face negative short-term outlook amid weak demand. Stable demand projected for PM Plates, yet a correction is anticipated. Buyers and sellers seek maximum gains, leading to a standstill. Activity set to resume with corrected prices, potentially stabilizing prices this week.