Steel Prices Surge Amid Plant Maintenance and Falling Imports

Key Highlights:

• Prices up: ₹48,500/t in NCR, ₹48,000/t in Mumbai, ₹46,500/t in Vizag
• Plant maintenance at Angul and Dolvi leads to market shortage
• India’s finished steel imports down 28.8% YoY in Apr–Jun
• Distributors face low inventory amid rising demand

Region-Wise Price Update

• Ex-Mumbai: ₹47,500 – ₹48,000/ton
• Ex-Delhi NCR: ₹48,000 – ₹48,500/ton
• Ex-Vizag: ₹46,000 – ₹46,500/ton

Note: Distributors across the North, West, and South have increased prices. The above rates are based on those changes.

Demand & Supply: TMT Supply Crunch Drives Price Hike

Prices have begun to rise due to the ongoing maintenance activities at both the Angul and Dolvi plants. These operations have led to reduced supply availability, creating a shortage in the market. Consequently, despite the typical slowdown during the monsoon season, prices have shown an upward trend.

Steel Import Trends: April–June FY2025

India's finished steel imports fell nearly 30% in the first three months of FY2025, largely due to a sharp decline in shipments from China and Japan, according to provisional government data reviewed by Reuters.

• India imported 1.4 million metric tons of finished steel during April–June, down 28.8% YoY.
• Shipments from China fell 45.8%, and from Japan declined 65.2%.
  • China: 0.3 million tons
  • Japan: 0.2 million tons
• A 12% safeguard duty was imposed in April on select steel imports, mainly to counter the influx of cheap shipments from China.
• South Korea was the largest exporter to India during the period, with 0.5 million tons, down 6.5%.

India remained a net importer during the period, as exports declined 5.1%.

• Belgium was the top destination for finished steel exports, up 40.8%.
• Shipments to the U.S., Spain, and Nepal rose, while exports to Italy declined.
• Volume-wise, galvanised plain or corrugated sheets/coils were India’s largest exports.

Domestically:

• Crude steel production stood at 40.6 million tons, up 11.2%.
• Finished steel consumption was 38.3 million tons, up 7.9%.
• However, domestic rebar prices edged lower due to weak market sentiment and the onset of monsoon, as per a government report.

Market Outlook and Expert Opinion

As demand continues to grow steadily, producers have been introducing incremental yet targeted price hikes. If this demand momentum persists, further price adjustments are expected in the coming weeks.

The upward pressure on prices is being reinforced by ongoing maintenance activities at the Angul and Dolvi plants, which have notably reduced supply.

Distributors currently hold insufficient inventory to meet rising demand, raising concerns about potential shortages and logistical bottlenecks. At the same time, manufacturers are witnessing a surge in new orders, prompting them to recalibrate production schedules to align with the heightened demand.

This combination of constrained supply and rising demand is expected to sustain market volatility in the near term.