Steel prices in India saw a 1-3 per cent fall on a month-on-month basis in December 2023, continuing the slide experienced since the beginning of the third quarter in October 2023, as increased imports from China and a slowdown in demand due to the holiday season led to a change in market conditions.
The benchmark hot rolled coil (HRC) trade prices were at ₹55,000 per tonne for early December deliveries, a one per cent drop from early November prices when it was around ₹55,200 per tonne, per market sources. Incidentally, the fall is a steeper 6 per cent when compared to early October deliveries, where the price was ₹58,300 per tonne.
The HRC price saw ₹100 per tonne improvement over November-end trade prices, which were at ₹54,900 per tonne, sources added.
In the rebar segment, driven primarily by demand in the construction sector, there was a 2.5 per cent fall in December prices to ₹54,500 per tonne, against ₹55,900 per tonne in November and a sharper 6 per cent fall over October prices of ₹57,900 per tonne.
Market research firm SteelMint said in a report that India’s steel mills have announced a rebate or discount of ₹1,500–2,000 per tonne on HRC, whereas manufacturers have also provided a rebate on the list prices of cold-rolled coil (CRC) by the same amount.
The price of cold-rolled coils has remained stable at ₹62,500 per tonne.
Rising Imports
Chinese imports increased in November 2023. Bulk imports of hot-rolled coils and plates from the country reached 1.08 million tonnes (mt) in November, one of the highest so far this fiscal year. In comparison, October imports were 584,999 tonnes and September was 235,240 tonnes.
This increased supply, mostly from China and some from Vietnam, has created an imbalance in the domestic market, thereby putting pressure on prices, market sources said .
The Chinese price (in India) has moved up steadily from October onwards, from $564 per tonne (around ₹48,000 per tonne) to $609 per tonne in December (₹51,000 per tonne). India’s comparative price has been in the $660 per tonne range.
And as per sources, orders booked at a lower price and significant cargo volumes coming in will continue to put pressure on the Indian market till mid-January, leading to price volatility.
“Market participants anticipate a rebound in demand and consumption post-mid-January, which could elevate the price pressures and stabilise the market,” the report added.
