Domestic Steel Prices On The Rise- Checkout The Latest Updates

The recent surge of around Rs. 1,500/ton in the domestic Steel market within three days (15 May’23-17 May’23) can be attributed to a scarcity of Scrap materials. This situation has prompted sellers to increase Steel prices across various segments. The Semi-Finished Steel market witnessed a significant price hike. In line with it, TMT makers have also raised their offers, while the demand for Flat Products remained sluggish.

Latest Updates

• Rise In Enquiries & Bulk Orders For Semis- The Semi-Finished Steel market has seen a notable price increase by up to Rs. 1,000/ton in the last three days. Inquiries for Sponge Iron have improved followed by healthy transactions on continuously increasing prices. Buyers have been actively booking bulk orders for Billets, indicating a positive sentiment and confidence in the market.

• Scrap Shortage Sparks Price Surge- Rumors suggest that the sudden boost in Steel prices is primarily linked to Scrap shortage in the domestic market. Scrap demand has surged since Indian customs halted the import clearances of scrap materials originating from the UAE. This development had a profound impact on the overall Indian Steel market, prompting sellers to increase Steel prices.

• Moderate Finished Steel Trading- Trading activities for TMT and Wire Rod have remained moderate, even with higher offers. Especially, TMT manufacturers were noticed to refrain from reducing prices. In some regions, manufacturers have even quoted materials at higher rates, taking advantage of the current situation. While Flat Products in the domestic market have remained slightly fluctuated due to sluggish demand and dull sentiments in the international market.

Market Outlook

The Scrap materials shortage and price hikes have impacted the market, while the upcoming Iron Ore auction is anticipated to play a crucial role in shaping the market’s trajectory, OfBusiness learned. Market participants are advised to closely monitor developments and exercise caution while making strategic decisions.

OFB’s Insight 

The domestic Steel market has witnessed a supportive sentiment since the beginning of the week, driven by various factors such as price hikes, fluctuating demand, and scrap materials shortage. The market outlook remains uncertain, and market participants are closely monitoring the situation, particularly in anticipation of the upcoming Iron Ore auction by OMC.

Read more: Pellet Prices Rebound In Central India, OMC Auction Results Awaited

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