OfBusiness Steel Dailies

Sponge Iron, Billet, TMT, Flat Steel

9th June’23

Price

• The domestic Semi-Finished market including Billet and Spong Iron stood volatile yesterday and prices fluctuated by Rs. 100-500/ton pan India. The Rebar market noticed a slight supportive trend due to improved demand, with prices raised by around Rs. 100-300/ton in major markets. Meanwhile, the HRC and CRC prices stood at Rs. 58,000/ton and Rs. 62,000/ton ex-Delhi NCR, respectively.

Demand and Supply

• With stable prices for Flat Products, increased demand has made projects more viable. Suppliers are now building their order books and preparing for dispatch. Production is in full swing to meet the demand, reduce lead times, and ensure timely delivery of materials.
• Primary TMT market sees strong demand from major clients, ensuring ample supply and smooth transactions. Secondary TMT market experiences consumer shift to primary options due to monsoon and pricing disparities. Recent project and dealer orders pose manufacturing challenges, despite no past supply issues.

News

• India is engaging in discussions with the United States to pursue an exemption from the Steel tariffs previously imposed by former President Donald Trump. In exchange, India is considering the withdrawal of certain retaliatory tariffs. Negotiators from both countries are optimistic about reaching an agreement during Indian Prime Minister Narendra Modi’s upcoming visit to the U.S.

OFB’s Opinion

• As market prices stabilize for Flat Steel, suppliers are witnessing a rise in their order books, indicating an expected increase in demand in the near future. Suppliers have ramped up production to meet this demand and reduce lead times for deliveries.
• The primary and secondary TMT markets anticipate price stability. Lower rates from primary producers impact the secondary market, which is expected to experience declining rates due to monsoon and pricing variations. This may lead consumers to favor primary producers, potentially straining their supply.