HRC Prices Show Revisions; Market Stabilization and Demand Rebound Expected
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The Indian hot-rolled coil (HRC) market is undergoing price revisions due to an oversupply, driven by increased production and softened demand from sectors like automotive and construction. The market is showing signs of stabilizing, with potential for a demand rebound. Industry stakeholders should monitor developments closely to make informed decisions.
Price
- Markets reported a few price changes in HRC compared to the previous day across various geographical locations. The prices of flat products in different markets are as follows:
- The HRC offers are below:
- Ex-NCR/Delhi: Rs. 52,300/ton
- Ex-Mumbai: Rs. 52,300/ton
- Ex-Ahmedabad: Rs. 53,000/ton
- Ex-Chennai: Rs. 52,800/ton
- Ex-Kolkata: Rs. 51,700/ton
- Ex-Hyderabad: Rs. 52,000/ton
- The CRC offers are below:
- Ex-NCR/Delhi: Rs. 58,000/ton
- Ex-Mumbai: Rs. 62,000/ton
- Ex-Ahmedabad: Rs. 64,500/ton
- Ex-Chennai: Rs. 63,500/ton
- Ex-Kolkata: Rs. 61,000/ton
- Ex-Hyderabad: Rs. 62,500/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 steel market is currently navigating a delicate balance between supply and demand, with the Indian hot-rolled coil (HRC) segment specifically grappling with a supply overhang. This surplus has been fueled by ramped-up production from domestic steelmakers, coinciding with a softening of demand from key consuming sectors such as automotive and construction.
- Consequently, HRC prices have been under downward pressure, experiencing a correction. Nevertheless, the slowing rate of this price erosion suggests that the market is poised to enter a phase of price stabilization, potentially paving the way for a rebound in demand and a more balanced supply chain.
News
- India plans further discussions with steel companies regarding proposed import restrictions on low-ash metallurgical coke, essential for steelmaking. The Directorate General of Trade Remedies (DGTR) suggested a 2.85 million metric ton annual import quota in April to safeguard domestic producers. In response, the Directorate General of Foreign Trade has asked DGTR to gather feedback from stakeholders, including steel mills and local coke producers. The timeline for these consultations has not been disclosed.
Expert Opinion
- The Indian hot-rolled coil (HRC) market is experiencing a period of price consolidation, poised to reach a new equilibrium. The deceleration in HRC price corrections suggests a potential shift towards market stabilization.
- Steel mills, service centers, and end-users must closely monitor these developments to adapt to the changing steel market landscape and make informed decisions amid the evolving demand-supply dynamics.
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