OfBusiness Steel Dailies

Sponge Iron, Billet, TMT, Flat Steel

24th May’23

Price

• The Semi-Finished Steel (Billet and Sponge Iron) market noticed a sluggish trend and prices fell by Rs. 300-700/ton. Moreover, the domestic TMT market remained under pressure and prices plunged up to Rs. 500/ton across various regions. Meanwhile, HRC offer was around Rs. 58,500/ton, and CRC prices remained at about Rs. 63,000/ton ex-Delhi NCR.

Demand and Supply

• Flat Products witnessed sustained low demand throughout the month, discouraging major buyers. Traders and distributors resort to case-by-case discounts to clear inventories. While plant availability slightly improves, it adds pressure to price revisions.
• In the secondary TMT market, sellers and manufacturers are selling aggressively due to low demand, while customers wait for lower prices. In the primary market, there is excess supply as customers delay their orders.

News

• Steel producers worldwide, including India, face a 30% rise in costs to create ‘green steel’ for net-zero goals, as the absence of a unified technology hinders progress, experts highlighted at the Singapore Green Steel Forum.
• JSW Steel is to invest Rs. 9,000 crores for a 13.2 million tons integrated Steel plant in Odisha, aiming to become a leading global Steel producer with responsible growth and sustainability.

OFB’s Opinion

• Flat Products face a bleak near-term outlook with weak demand. Unfavorable export prices from international mills and downward price revisions in the local market create pressure, potentially impacting prices in June.
• Secondary TMT prices are falling due to reduced demand, widening the gap with the primary competitor. Primary producers lowered prices and expect a further decrease, potentially leading to a Rs. 500/ton correction in secondary prices.