Week 19 Of 2023: Indian Steel Market Experienced Major Price Fluctuations- Find Out Which Products Were Most Affected

Indian domestic Steel market gained support at the beginning of the week however, in the latter half, Steel price movement fluctuated. On the other hand, raw materials (Iron Ore and Coal) prices remained on the downward side. A major boom occurred in the Semi-Finished Steel market as mill owners resumed bulk booking of the material after being silent for a long time. Hence, it affected the Finished Steel prices as well and sellers started quoting at high prices. Despite high offers, the demand for TMT stood firm from retail counters and moderate from projects. industry sources reported to OfBusiness.

In this article, let’s explore more the steel industry’s performance:

Price Increase

• Billet & Sponge Iron The domestic Billet and Sponge Iron market saw a significant price increase up to Rs. 2,100/ton with a major hike in Mumbai’s Billet, and Raipur’s Sponge Iron market W-o-W basis.

• TMT- The TMT prices also inched up by around Rs. 500-1,700/ton pan India during the week. However, the TMT market witnessed low buying interest on higher offers.

• Flat Products– In the Flat Products segment, the market has been moderate with buyers hoping for further price correction this month.

Market Performance

• Semi-Finished- The market noticed improved demand in the first half during week 19. Sellers increased offers due to bulk buying and hence trades remained active. However, in the latter half the market became volatile and its effect was seen in the prices as they varied in the range of Rs. 200-500/ton (11th May 23 – 13th May 23). 

• Flat Steel- Irrespective of fewer changes in mills’ offers, the Flat Steel market in India remained weak in line with weak global sentiments. Sellers have started offering Flat Steel products at lower prices to clear their stock and offering materials at attractive discounts.

• Long Steel-: TMT market remained sluggish with fluctuating demand from retail counters and projects. Buyers seemed cautious amid market fluctuations. Despite these circumstances, distributors and traders are closely eyeing TMT price revisions by primary mills, with an optimistic outlook for a potential price correction of approximately Rs. 1,000/ton within this month.

Domestic Steel Prices

• Sponge Iron (Pellet-based)- The prices stood at around Rs. 29,000-29,100/ton ex-Raipur (increased by Rs. 1,500/ton).

• Billet- The prices were at Rs. 44,300-44,400/ton ex-Raipur (increased by Rs. 1,300/ton).

• Secondary TMT- The prices were reported at Rs. 50,300-50,600/ton ex-Raipur (increased by Rs. 500/ton).

• Secondary Wire Rod- The rates stood at Rs. 48,100-48,400/ton ex-Raipur (increased by Rs. 600/ton).

OFB’s Insight

The Indian domestic Steel market experienced fluctuations in Steel prices, with raw material prices remaining on the downward side. The Semi-Finished Steel market saw a boom as mill owners resumed bulk bookings, affecting Finished Steel prices. TMT demand remained firm from retail counters and moderate from projects. The Flat Products market remained steady, with buyers hoping for a further price correction. The Billet and Sponge Iron market witnessed a significant price increase, leading to a slight increase in TMT prices. However, low buying interest was observed in the TMT market. Overall, distributors and traders are optimistic about a potential price correction in TMT within the month

Read more: Indian HRC Market Facing Tough Time, Suppliers Seeking For Orders

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