Flat Steel Market Stable; Domestic Demand Supports Growth, Exports Slow

Industry Highlights:

• Flat Steel Prices Stable: HRC and CRC prices remained unchanged in major Indian markets, maintaining stability in the flat steel sector.
• Strong Domestic Demand: India's steel demand continues to grow, driven by government infrastructure projects and strong activity in construction, automotive, and manufacturing sectors.
• Export Market Slows: India's HRC export market has quieted due to the holiday season, with reduced trade and minimal price changes, though recovery is expected after the holidays.

Flat Steel Prices

• The flat steel market reported no price changes in HRC and CRC compared to the previous day in the major Indian markets. The prices of flat products in various markets are as below:

HRC offers (Grade: E250 BR, Size 2.5-8.0 mm)

• Ex-NCR/Delhi: Rs. 50,500/ton
• Ex-Mumbai: Rs. 50,500/ton
• Ex-Ahmedabad: Rs. 51,200/ton
• Ex-Chennai: Rs. 51,000/ton
• Ex-Kolkata: Rs. 49,200/ton
• Ex-Hyderabad: Rs. 50,200/ton

CRC offers (Grade: IS513, Size 0.80-2.00 mm)

• Ex-NCR/Delhi: Rs. 58,000/ton

• Ex-Mumbai: Rs. 60,700/ton

• Ex-Ahmedabad: Rs. 62,000/ton

• Ex-Chennai: Rs. 60,700/ton

• Ex-Kolkata: Rs. 59,000/ton

• Ex-Hyderabad: Rs. 59,800/ton

• PM Plates prices for Kolkata stand at around Rs. 55,500/ton and Rs. 55,700/ton for Hyderabad on an ex-works basis, respectively.

Flat Steel Demand and Supply

In December 2024, India’s steel demand shows strong growth, driven by government infrastructure projects like the National Infrastructure Pipeline and Smart Cities Mission. The construction, automotive, and manufacturing sectors are key contributors. This growth positions India as a significant player in the global steel market, contrasting with the stagnation in other major economies.

Flat Steel News

• India's Hot Rolled Coil (HRC) export market has remained quiet as the Christmas holiday season approaches. With many international buyers slowing down their activities, there has been a noticeable drop in trade. As a result, price movements have been minimal, and transaction volumes have been lower.
• Exporters are hoping for a rebound once the holidays pass and global market activity picks up. Currently, the market is subdued in terms of both pricing and sales volume, reflecting the seasonal slowdown in demand.

Expert Opinion

In December 2024, the sentiment for steel coils in India remains positive, with steady demand from infrastructure and construction projects, bolstered by post-monsoon activity. Growth in the automotive and manufacturing sectors further supports consumption. While raw material price volatility and global uncertainties pose short-term challenges, strong domestic demand and government-led infrastructure spending are expected to sustain a favorable market outlook.