Most steel and raw material prices up-trended m-o-m in April 2024, as mills cut production to restore supply-demand imbalance. This tightened supply, led to inventory depletion, and a spurt in the prices of finished steel and raw materials. But coking coal fell amid volatility, making Indian buyers cautious. Finished steel prices may see a further uptick in May, although there is a question mark on whether these will get absorbed in the market. In raw materials, Australian coking coal may see further downward pressure amid competition from Russian sellers but thermal coal may uptrend due to increased offtake from sponge players. Metallics like sponge, scrap, iron ore may stay see an uptrend on the expectation of active buying to meet restocking needs ahead of the onset of monsoons. Also, finished steel demand is expected to remain good post-elections, and inventory depletion.
