Hot Rolled Coil Prices Decline Slightly Amid Low Demand

Price

• Markets have reported a slight decline in Hot Rolled Coil (HRC) prices, ranging from Rs 200-300/ton in major locations. The prices of flat products in various markets are as follows:

• The HRC offers are below:

• Ex-NCR/Delhi: Rs. 53,800/ton (Down by Rs 200)

• Ex-Mumbai: Rs. 53,800/ton (Down by Rs 200)

• Ex-Ahmedabad: Rs. 54,300/ton

• Ex-Chennai: Rs. 55,000/ton

• Ex-Kolkata: Rs. 53,000/ton

• Ex-Hyderabad: Rs. 53,000/ton

• The CRC offers are below:

• Ex-NCR/Delhi: Rs. 62,000/ton

• Ex-Mumbai: Rs. 64,500/ton

• Ex-Ahmedabad: Rs. 64,500/ton

• Ex-Chennai: Rs. 66,500/ton

• Ex-Kolkata: Rs. 61,000/ton

• Ex-Hyderabad: Rs. 63,000/ton

• PM Plates prices for Delhi NCR stand at around Rs. 59,500/ton and Rs. 58,700/ton for Mumbai on an ex-works basis, respectively.

Demand and Supply

• The demand for Hot Rolled (HR) plates, essential for fabrication and construction applications, has notably diminished. Sectors such as construction and automotive are experiencing reduced operational activity. The recent drop in domestic HRC prices in India is linked to weakened local demand and an increase in import volumes.

• This scenario presents a challenging market environment for domestic steel manufacturers, who are grappling with oversupply issues and intensified competitive pressures.

News

- Steel prices in India have dropped to a three-year low, with hot rolled coil prices averaging Rs 52,250 per ton ($620) in July. This decline is attributed to a surge in imports and weak exports. Finished steel imports reached a five-year high, largely from China and Vietnam.

• In response, the federal steel ministry has requested an investigation into these imports to address pricing concerns. Despite these challenges, India's economic growth and infrastructure investments provide a hopeful outlook for the steel industry.

Expert Opinion

• The ongoing negative spread between Hot Rolled Coil (HRC) and rebar prices has generated a bearish outlook in the short term. Market participants are concerned that this persistent trend could signal weakening HRC demand or a potential oversupply situation. Steel producers and investors may need to adjust their strategies to address the challenging pricing environment.