- Subdued demand leads to need-based procurement
- Leading steelmaker may take maintenance shutdowns
Trade-level hot-rolled coil (HRC) prices across India edged down by up to INR 300/tonne (t) w-o-w to INR 47,300-49,700/t. Conversely, cold-rolled coil (CRC) prices witnessed mixed trends w-o-w, settling at INR 52,600-56,000/t ($617-671/t) across markets.
BigMint’s benchmark assessment (bi-weekly) for HRCs (IS2062, Gr E250, 2.5-8 mm/CTL) declined marginally by INR 200/t w-o-w to INR 48,300/t ($549/t) on 19 February 2025. However, CRC (IS513, Gr O, 0.9 mm/CTL) prices increased by INR 300/t w-o-w to INR 55,100/t ($628/t). These prices are quoted ex-Mumbai for the distributor-to-dealer segment and exclude 18% GST.
Market updates
Trade segment sees marginal price drop: The market experienced a downturn, characterised by reduced sales volumes and a shift towards need-based, minimal-quantity purchases. This forced suppliers to cut prices.
Additionally, there are rumours of planned maintenance shutdowns at Tata Steel’s Kalinganagar, Meramandali, and Jamshedpur plants. Notably, the Jamshedpur facility is expected to undergo maintenance for an extended period.
“Demand in the trade market is severely depressed. Price elasticity is a critical factor, as sales are highly responsive to even minor adjustments in tags. The market is under considerable strain, and the absence of price support announcements from mills is compounding the current difficulties,” said a market participant.
“We are concerned that continued adverse conditions may lead to increased import activity,” he added.
Import trends: Imports of bulk HRCs and plates stood at 308,819 t till 17 February, as per vessel line-up data maintained with BigMint. It is expected that an additional 64,535 t will be imported by the month-end and 75,900 t in the first week of March.
Reports indicate that deals have been finalised for 2,000 t of HRCs at $530/t CFR Chennai and 30,000 t at $485-490/t CFR Mumbai.
Export offers show mixed trends: BigMint’s India hot-rolled coil (HRC, SAE1006) export index for the Middle East (ME) and Vietnam remained stable w-o-w. However, export offers to Europe declined w-o-w due to ongoing anti-dumping probes.
Outlook
The market remains weak, and suppliers are implementing marginal price cuts amid subdued demand and minimal-quantity purchasing. However, Tata Steel’s planned maintenance shutdowns may tighten supply, supporting prices. Hence, prices are expected to remain range-bound.
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