Indian HRC Market Approaching Stability Amid Oversupply and Evolving Dynamics
The Indian HRC market shows signs of stabilizing despite an ongoing oversupply caused by increased domestic production and reduced demand. Meanwhile, China's steel exports surged by 21.8% in January-July 2024, with steel imports falling and iron ore imports rising. The market's future hinges on these evolving dynamics.
Price
- The flat steel markets have reported no changes in HRC prices compared to the previous day. The prices of flat products in various markets are as follows:
- The HRC offers are below:
- Ex-NCR/Delhi: Rs. 52,800/ton
- Ex-Mumbai: Rs. 52,800/ton
- Ex-Ahmedabad: Rs. 53,300/ton
- Ex-Chennai: Rs. 54,000/ton
- Ex-Kolkata: Rs. 52,000/ton
- Ex-Hyderabad: Rs. 52,500/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 operates on a delicate balance between supply and demand. Recently, the Indian HRC market has faced an oversupply situation, driven by increased production from domestic mills and a slowdown in demand from key end-use sectors. This surplus has exerted downward pressure on prices. However, the rate of this decline is slowing, suggesting that the market may be nearing stabilization.
News
- China's steel exports surged by 21.8% year-over-year, reaching 61.23 million tons in January-July 2024. In the same period, steel imports declined by 6.7% to 4.12 million tons, while iron ore imports rose by 6.7% to 713.77 million tons.
- Indirect steel exports are projected to grow by 9% in 2024, driven by rising car exports, shipbuilding, the energy transition, and Russian demand. In 2023, steel production increased by 0.6% to 1.019 billion tons.
Expert's Opinion
- The Indian HRC market is currently undergoing a period of adjustment as it seeks to find a new equilibrium. The slowing pace of the decline in local trade prices suggests that the market may be moving toward a more stable phase.
- Industry stakeholders, including producers, traders, and end-users, will need to closely monitor these developments to navigate the evolving landscape.