Flat Steel Prices Show Mild Changes Amid Demand Recovery

Key Takeaways

• Flat Steel Demand Improving: Recovery is driven by automotive, construction, and infra sectors, with demand projected to grow further in 2025.
• Production and Costs Rise: Steel production is up 7% YoY in Q1CY25, though input costs (iron ore, coking coal) are climbing.
• Industry Outlook Positive: Despite volatility, long-term growth is expected, driven by “Make in India” and infrastructure investments.

Flat Steel Price:

Markets reports some price changes in HRC & CRC as compared to the previous day in a few geographical locations. The prices of flat products in various markets are as below:

Location        HRC      CRC    PM PLATE

NCR                52000    59000      52800

Mumbai         55000    62250      55500

Ahmedabad   54500    57000     55000

Chennai          54000    61000     54500

Kolkata           51500    59000      52500

Hyderabad     56000    61500      56500

Flat Steel Demand and Supply:

In May 2025, India's hot-rolled coil (HRC) market is witnessing moderate demand recovery, driven by key sectors like automotive, construction, and infrastructure. While demand is expected to rise, challenges include pressure from cheap imports, particularly from China. Major steelmakers are expanding capacities, and long-term demand is expected to grow with infrastructure development and "Make in India" initiatives. However, competition from imports remains a key concern.

Flat Steel News

POSCO reported an operating profit of KRW 568 billion ($403.61 million) in Q1 2025, marking an improvement over the previous quarter despite lower output and sales. Revenue fell 2% quarter-on-quarter and 3.4% year-on-year to KRW 17.43 trillion, while net profit declined to KRW 344 billion. Crude steel production dropped 5.4% to 8.65 million mt, with a slight dip in finished steel sales. The company aims to enhance efficiency by building an electric arc furnace and investing in overseas expansion and facility upgrades.

Expert Opinion:

As of May 2025, steel distributors in India face a complex market with both growth potential and challenges. Domestic steel demand is expected to grow by 8-9% in 2025, driven by the housing and infrastructure sectors. Regulatory changes, such as import restrictions on metallurgical coke, have disrupted supply chains, while price volatility due to cheap imports affects profit margins. Despite these challenges, the long-term outlook remains positive, depending on how the industry adapts to these issues.