Flat Steel Prices Stable, Market Shows Bearish Trend
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Flat steel prices are stable today after a reduction of up to Rs 1,000/ton. Demand for Hot Rolled plates has dropped, impacting construction and automotive sectors. JSW Steel’s July 2024 production rose by 9%, but a negative spread between HRC and rebar prices signals a bearish market outlook.
Price
- The flat steel markets reported stable prices today in major locations following a recent reduction of up to Rs 1,000/ton.
- The prices for major locations are listed below:
- The HRC offers are below:
- Ex-NCR/Delhi: Rs. 53,800/ton
- Ex-Mumbai: Rs. 53,800/ton
- 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
Demand for Hot Rolled (HR) plates, crucial for fabrication and construction, has significantly decreased. The construction and automotive sectors are experiencing reduced operational activity. The recent decline in domestic Hot Rolled Coil (HRC) prices in India is attributed to weakened local demand and increased import volumes. This situation is creating a challenging market environment for domestic steel producers, who are facing oversupply issues and heightened competitive pressures.
News
- JSW Steel's consolidated crude steel production in July 2024 was 22.15 lakh tonnes, a 9% increase from 20.39 lakh tonnes in July 2023. The Indian division produced 21.40 lakh tonnes, up 13% year-over-year with a 91% capacity utilization.
- JSW Steel USA produced 0.75 lakh tonnes, compared to 0.67 lakh tonnes the previous year. This reflects significant growth in steel production across both divisions.
Expert Opinion
- The current negative spread between Hot Rolled Coil (HRC) and rebar prices is creating a bearish outlook in the short term. This trend suggests potential weakening in HRC demand or possible oversupply, raising concerns among market participants.
- Steel producers and investors need to adapt their strategies in response to this challenging pricing environment. Overall, the negative spread is leading to caution in India’s steel market, with stakeholders remaining vigilant for possible price changes and demand shifts.
Daily Market Report
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