Week 18 Of 2023: Indian Steel Industry Plummets, Will Traders See a Turn-Around?

The Steel industry in India experienced a dull week with a drop in Steel prices in India and a lack of support in major markets. The domestic Billet and Sponge Iron market saw a significant price drop of around Rs.1,500-2,000/ton in central and southern regions, especially in Chhattisgarh and Telangana. The TMT market witnessed low buying interest, resulting in a drop of up to Rs. 2,000/ton pan India. Meanwhile, sellers were offering Flat Products at lower rates, although there was less buying interest observed on current offers, industry sources reported to Ofbusiness. Let’s explore more about the steel sector’s weekly performance in this article.

Weekly Performance Of Steel Sector

Here’s everything you need to know about the weekly update:

• Semi-Finished Market: The Semi-Finished market remained a bit sluggish due to limited inquiries and material lifting at the plant site at a slow pace. The drop in key raw material prices, such as Iron Ore and Coal, due to weak demand in the domestic market, has weighed on Sponge Iron rates. The Billet movement was affected due to slow purchases from re-rolling mills. Buyers in the southern and central regions were hesitant due to a maximum price drop of Rs.2,000/ton.

• Flat Steel Market: Irrespective of fewer changes in mills’ offers, the Flat Steel market in India remained weak. Some mills have already started offering at lower prices and so have distributors and traders. Sellers are focused on clearing their stock hence, offering material at more discounts. Also, the global Flat Steel market noticed dullness as Chinese mills were offering material at cheaper prices which impacted the Indian domestic market.

• Long Steel Market: The Finished Long Steel market in India continued to experience a downward trend at the beginning of May 2023. Wire Rod and TMT prices were affected, leading to a fall of up to Rs. 2,000/ton this week. However, distributors and traders are eyeing primary mills’ TMT price revisions and hoping for a price correction of around Rs. 1,000/ton this month.

Prices In India

Here are the latest steel prices in India:

• Pellet-based Sponge Iron- The prices were at around Rs. 27,550-27,650/ton ex-Raipur (down by Rs. 1,500/ton).
• Billet- The prices were at Rs. 43,450-43,650/ton ex-Raipur (down by Rs. 2,000/ton).
• Secondary TMT- The prices were reported at Rs. 50,200-50,500/ton ex-Raipur (down by Rs. 2,000/ton).
• Secondary Wire Rod- The prices stood at Rs. 47,900-48,200/ton ex-Raipur (down by Rs. 2,000/ton).

OFB’s Insight

Overall, the Indian Steel industry faced a lack of support and a drop in Steel prices in India during week 18. The Semi-Finished market remained sluggish, and the Billet movement was affected due to slow purchases from re-rolling mills. The market sentiments for Flat Products remained dull and sellers were offering material at lower prices. The Finished Long Steel market witnessed a downward trend, leading to a drop of up to Rs. 2,000/ton. Despite this, distributors and traders are hoping for a price correction this month. The industry’s performance is crucial, and a positive trend is necessary to maintain the economy’s growth rate.