HRC Shows a Minor Price Change Due to Low Local Demand

Price

The prices of flat steel products in various markets are as below:

HRC Offers

Ex-NCR/Delhi: Rs. 53800/ton
Ex-Mumbai: Rs. 53800/ton
Ex-Ahmedabad: Rs. 54300/ton
Ex-Chennai: Rs. 55000/ton
Ex-Kolkata: Rs. 53000/ton
Ex-Hyderabad: Rs. 53000/ton

CRC Offers

Ex-NCR/Delhi: Rs. 62000/ton
Ex-Mumbai: Rs. 64000/ton
Ex-Ahmedabad: Rs. 64500/ton
Ex-Chennai: Rs. 63500/ton
Ex-Kolkata: Rs. 61000/ton
Ex-Hyderabad: Rs. 63000/ton

PM plate prices range between Rs. 59,500 to 57,700 while PPGI prices vary between Rs. 74,000 to Rs. 78,000.

Demand and Supply

Downturn in key end-user segments, notably construction and automotive, has triggered a significant drop in demand for Hot Rolled (HR) plates, essential for fabrication and construction applications. As a result, domestic Hot Rolled Coil (HRC) prices in India have softened, driven by diminished local consumption and a surge in imports leading to an oversupply situation. This confluence of factors is creating a challenging environment for Indian steel producers, who are facing issues such as oversupply, heightened competition, and margin compression amidst a volatile market.

News

• Indian steel prices afflicted by down syndrome: composite index hovers at pandeamic levels
• The composite index for steel prices, which reflects the average cost of various steel products, has been notably flat, akin to the levels seen during the global pandemic. This stagnation is largely attributed to a slowdown in economic activity, which has affected demand across key sectors such as construction and manufacturing.
• As per an industry analyst, “Steel prices have been unusually stable, mirroring the conditions we saw during the pandemic. This is primarily due to weakened demand and fluctuating input costs.”
• The outlook for the steel industry is cautiously optimistic. If economic conditions improve and supply chain issues are resolved, a positive shift in steel prices can be seen.

Expert Opinion

A troubling trend has emerged in India's steel market. The price difference between Hot Rolled Coil (HRC) and rebar has flipped into negative territory, indicating a possible decline in HRC demand or an oversupply situation. This shift has sparked concern among industry players, leading steel producers and investors to re-evaluate their market strategies. As the sector faces these challenging pricing issues, stakeholders are exercising caution and keeping an eye on potential price volatility and demand shifts.