How Indian Domestic Steel Market Performed In May 2023?

During 29 May 2023-4 June 2023, (week 22 of 2023) the Indian Steel industry remained dull. Apart from slow demand, the domestic market was also impacted by the sluggish trends in the global Steel market, sources reported to Ofbusiness. The international Steel market was under pressure which further influenced the downward price momentum and in some parts of the globe, it remained highly volatile. Let’s understand the Indian Steel industry’s movement in May 2023 and what lies ahead in June 2023

Product Wise Market Sentiments

• Semi-Finished- The Semi-Finished market dropped by Rs. 300-1,500/ton compared to last week however, a maximum fall was noticed in the Southern region. Throughout May, it fell by around 2,500/ton pan India. The Indian Billet market remained subdued amid limited demand from the re-roller’s end. Due to fewer bookings and low dispatch, the Finished Long Steel (Rebar), makers have come under great pressure. This has disturbed the domestic Billet market.

• Rebar- Sellers seemed under pressure for reducing TMT prices. The offers dropped in the range of Rs. 500-1,700/ton week-on-week, whereas the monthly reduction is up to Rs. 2,700/ton. The main challenge before re-rolling mills is increasing inventory, keeping this thing in mind, mills are focusing on clearing stock. Meanwhile, some rolling mills are maintaining production levels to avoid supply-demand mismatches.

• Structural Steel- The Structure market has experienced a predominantly downward trend due to the cautious buying behavior and need-based procurement of end consumers. As a result, mills have reduced Structure offers by Rs. 500-1,300/ton compared to the previous week. Looking at the month-on-month change, prices have declined by around Rs. 2,200/ton. Despite this, primary mills have managed to maintain stable prices by maintaining the supply of lower and heavy sections.

• Flat Steel- The domestic Flat Steel market has been experiencing the effects of the ongoing decrease in international HRC prices, leading to an influx of imported Steel. This led to an opportunity for Indian buyers who have recently concluded HRC import deals, causing a sense of unease among sellers. Consequently, HRC and CRC domestic prices declined by approximately Rs. 2,000-2,500/ton compared to April 2023.

• Pipe– Despite firm demand, the Indian Pipe industry remained stagnant in May 2023. Manufacturers are encountering delivery challenges in certain segments due to concerns over the availability of raw materials.  

Prices 

• Primary TMT
  • Ex Mumbai: Rs. 55,000-55,500/ton
  • Ex Delhi: Rs. 55,000-55,500/ton
  • Ex Vizag: Rs. 53,000-53,500/ton
• Secondary TMT
  • Ex Raipur: Rs. 48,300/ton
  • Ex Delhi NCR: Rs. 52,100/ton
  • Ex Hyderabad: Rs. 52,000/ton

• Primary Structure (100 x 50 Channel)
  • Ex Durgapur: Rs. 55,000/ton
  • Ex Chennai: Rs. 58,500/ton
  • Ex Hyderabad: Rs. 57,000/ton
• Secondary Structure (100 x 50 Channel)
  • Ex Raipur: Rs. 52,000/ton
  • Ex Raigarh: Rs. 51,500/ton
  • Ex Chennai: Rs. 54,000/ton
  • Ex Hyderabad: Rs. 53,200/ton

• Pipes
  • DI Pipes (100mm K7)- Rs. 1200-1220/meter (The prices are FOR basis within the radius of 800 km)
  • MS ERW Pipe– Rs. 66-67/kg
  • MS GI Pipe (YST-210 grade) 62-63/kg

OFB’s Insight

The Indian Steel market is currently experiencing a period of uncertainty, posing challenges for the industry. May 2023 witnessed low demand and falling prices, putting pressure on the overall market. Market participants anticipate further price corrections in June 2023, leading traders and distributors to eagerly await price revision announcements from primary mills.

Read more: Supply Shortage Keeps Pig Iron Market Supported In Eastern India

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