Indian HRC Market Approaching Stability Amid Oversupply and Evolving Dynamics
%2Fhttps%253A%252F%252Fofbadmin.s3.ap-southeast-1.amazonaws.com%252Fnexizo%252Fproduction%252Fstrapi%252FFlat_Steel_HRC_4_e63ce2de4f.png&w=1920&q=90)
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.
%2Fhttps%253A%252F%252Fofbadmin.s3.ap-southeast-1.amazonaws.com%252Fnexizo%252Fproduction%252Fstrapi%252FMild_Steel_3_c017e32b37.png&w=750&q=90)
%2Fhttps%253A%252F%252Fofbadmin.s3.ap-southeast-1.amazonaws.com%252Fnexizo%252Fproduction%252Fstrapi%252Ftmt_3f051e2fb7.png&w=750&q=90)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252FTMT_Fe_550_D_d1944141c6.png&w=3840&q=75)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252F16493_1317_image_0_d2f7b743ad.jpg&w=3840&q=75)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252Fhot_rolled_steel_coil_roll_o0_Q4an9_600_fe306f6654.jpg&w=3840&q=75)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252FCRC_cec6577b20.png&w=3840&q=75)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252FHR_Plate_4c9d03721e.png&w=3840&q=75)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252Fhttps%25253A%25252F%25252Fnexizo.ai%25252Fassets%25252Fved.png&w=128&q=75)