Flat Steel Market Stagnant as Demand Uncertainty Continues to Loom
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The flat steel market remains stagnant, with no price changes reported for HRC across major locations. Demand uncertainties, particularly in construction and automotive sectors, are contributing to a downturn. As industry participants closely monitor the situation, the reversal of HRC's price premium over rebar raises concerns about future market dynamics.
Flat Steels Price Overview
- The flat steel markets have reported no price changes in HRC compared to the previous day across major locations. The prices of flat products in various markets are as follows:
Demand and Supply
- A resurgence in demand, particularly from the construction and infrastructure industries, is crucial for revitalizing the steel sector. However, the timing of this recovery remains uncertain.
- The slump in demand across key end-use sectors, especially construction and automotive, has led to a significant drop in flat steel demand. Consequently, the domestic market in India is experiencing a downturn.
News
- The Indian steel sector's investment in digital technologies is expected to double to $2.7 billion by 2030, according to industry reports. This increase is driven by the adoption of digital tools like process optimization, digital twins, and energy efficiency improvements. While large integrated steel players exhibit high technology adoption, mid-sized producers have moderate integration, and smaller producers lag behind.
- The report highlights the importance of technology-driven advancements to meet India's National Steel Policy goals, especially as domestic finished steel consumption reached 136.3 million tons in FY24, up from 100.2 million tons in FY20.
Expert’s Opinion
- The typical price premium of Hot Rolled Coil (HRC) over rebar has reversed, suggesting a potential decrease in HRC demand or an oversupply situation. This unusual price inversion has raised concerns among steel industry stakeholders, prompting producers and investors to reassess their strategies. Industry participants are adopting a cautious approach, closely monitoring market conditions for signs of price changes and demand shifts.
Daily Market Report
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