Prices correct sharply, market expect some stability
Indian steel prices have corrected sharply last week due to the weak demand and bearish sentiments prevailing in the market. Steel mills sit on high inventory levels on low export orders. Indian steel exports dropped 57% in Apr’17 at 0.65 MnT from 1.52 MnT in Mar’17.
Last week, Billets and long product prices have corrected upto INR 2,000/MT (USD 30), W-o-W. While raw materials; pellet and scrap prices decline upto INR 500/MT (USD 8).
For outlook prospect, the Industry participants are assuming that there is limited scope of further corrections, looking at high input cost compare to low trade prices.
However, if prices move further down the possibilities are that the manufacturers may cut production to mitigate the demand supply glut and to reduce losses as well, as stated by market participants.
Raw material and Finished steel Prices in India as on 6 May’17 (Week 19)
| Products | Markets | Taxes | Prices | W-o-W |
| Pellet Fe 63%, 6-20 mm | Ex-Durgapur | ED 12.5%, VAT/CST Extra | 4,800 | -250 |
| Iron ore Fe 62%, 5-18 mm | Joda (loaded to wagon) | Incld Royalty, DMF & NMET | 3,950 | 0 |
| Scrap HMS (80:20) | Ex-Mumbai | ED 12.5%, VAT/CST Extra | 21,000 | -500 |
| C-DRI 80 FeM | Ex-Raipur | ED 12.5%, VAT/CST Extra | 16,500 | -700 |
| P-DRI 80 FeM | Ex-Raipur | ED 12.5%, VAT/CST Extra | 15,150 | -750 |
| Pig iron Steel grade | Ex-Raipur | ED 12.5%, VAT/CST Extra | 24,900 | -150 |
| Billet 125*125 MM | Ex-Mumbai | ED 12.5%, VAT/CST Extra | 26,800 | -1,050 |
| Rebar (12mm) | Ex-Mumbai (Medium Scale) | ED 12.5%, VAT/CST Extra | 31,300 | -500 |
| Ex-Mumbai(Large Scale) | ED 12.5%, VAT/CST Extra | 35,600 | 0 | |
| HRC (2.5-8 mm) | Ex-Mumbai | Incld ED 12.5%, VAT/CST Extra | 41,000 | 0 |
| Wire Rod (5.5 mm) | Ex-Raipur | ED 12.5%, VAT/CST Extra | 29,500 | -1,400 |
| Structure ( 40 Angle) | Ex-Mumbai | ED 12.5%, VAT/CST Extra | 31,600 | -1,100 |
Prices are in INR/MT, 1 USD = 64.27 INR
Sources: SteelMint Research and Customs
Leave a Reply