Indian Steel Market Receives Mixed Trend

The semi-finished domestic market for sponge iron and billet saw a slight increase in prices in the range of Rs 100-500/ton due to a slight demand recovery. However, the finished long steel market, including TMT and wire rod, noticed a slight variation of Rs 100-400/ton across various markets in India yesterday. Despite this, major buyers have turned cautious for future bookings due to uncertain price movements.

The semi-finished domestic market for sponge iron and billet saw a slight increase in prices in the range of Rs 100-500/ton due to a slight demand recovery. However, the finished long steel market, including TMT and wire rod, noticed a slight variation of Rs 100-400/ton across various markets in India yesterday. Despite this, major buyers have turned cautious for future bookings due to uncertain price movements.

During the week, primary mills’ prices of long steel products observed slight price corrections, with TMT offering at around Rs 62,500/ton ex-Mumbai and secondary mills offering at Rs 56,000-56,500/ton ex-Mumbai. In the flat steel segment, prices remained strong across all markets by Rs 500-1,000/ton, with HRC offers reported at around Rs 59,000-59,500/ton ex-Mumbai and Delhi.

Both primary and secondary mills have been seen clearing the pending orders in hand and are focusing on maintaining inventory at plants. However, due to the continuous downward trend in the secondary market during the previous week, primary mills are forced to reduce offers.

In the flat steel market, supply remains consistent against demand in the spot market, but offers from distributors have fluctuated by Rs 500-1,000/ton, with a major fall of Rs 500-800/t seen in the Ahmedabad and Kolkata regions, respectively.

Despite this, mill owners expect demand to accelerate, and the market to remain stable as raw material costs, such as coal, remain high and are becoming a burden on production costs.

Overall, the market outlook remains stable, with buyers and sellers behaving positively. Buying is expected to improve from traders/stockiest end to complete their MOU fulfillment criteria with major secondary and primary mills.

Read more: https://www.ofbusiness.com/blogs/indian-mid-sized-steel-mills-observes-downturn/21724