OfBusiness Steel Dailies | 7th July 2023

Sponge Iron, Billet, TMT, Flat Steel

Price

• The domestic market for Semi-Finished products, including Billet and Sponge Iron, remained mostly stable amid improved demand. However, secondary Rebar prices increased by Rs. 100-400/ton due to increased inquiries. Meanwhile, the Flat Products market stabilized after a slight price correction a few days ago. HRC and CRC offers to stand at Rs. 56,500/ton and Rs. 61,000/ton ex-Delhi NCR, respectively.

Demand and Supply

• Demand remains stagnant with developers showing interest but no progress. The critical supply issue arises from maintenance shutdowns by major millers, impacting delivery schedules for both existing and new orders, now quoted with an 8-10 week timeline. Limited availability stabilizes market prices.

News

• JSW Steel plans to nearly double its capacity to 50 million tons within three years, relying solely on renewable power sources for production. 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. Improved demand is expected once market correction anticipation subsides without significant alterations, leading to a more favorable outlook in the upcoming weeks.