Indian steel prices in the just-concluded financial year 2023-24 (FY’24) contracted in comparison with FY’23 due to an assortment of factors including, but not limited to, a weak external environment amid global inflation and monetary tightening , higher imports and pressure on export volumes, as well as the late correction in coking coal prices. Domestic steel consumption edged up at an average of 13-15% during most of FY’24 – the highest after the global financial crisis post 2008 – on the back of pre-election year infra spending by the government. What’s more, even domestic iron ore prices remained firm. However, steel prices still remained largely subdued on a y-o-y basis, which goes to show the inter-connectedness of global steel markets and prices, as well as global sentiments weighing on domestic prices.
