India’s steel prices fall to lowest in over three years: BigMint

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India’s steel prices fall to lowest in over three years: BigMint

India’s steel prices fall to lowest in over three years: BigMint

Industry News
Aug 09,24

In July, the average price for hot rolled coils, essential for manufacturing, was Rs 52,267 per tonne.

India’s steel prices fall to lowest in over three years: BigMint

Steel prices in India have dropped to their lowest in over three years due to increased imports and weakened export performance, according to data from commodities consultancy BigMint.

In July, the average price for hot rolled coils, essential for manufacturing, was Rs 52,267 per tonne.

India, the world’s second-largest producer of crude steel, became a net importer during the fiscal year ending March 31, 2024. This trend continued into the current year, with finished steel imports reaching a five-year high in April-May, as per provisional government data.

The influx of steel from China and Vietnam, combined with Chinese exports in international markets, has rendered Indian steel exports less competitive, exerting downward pressure on domestic prices, BigMint reported.

"This surge in imports and the concurrent drop in exports have profoundly impacted the pricing dynamics within the Indian steel industry," BigMint.

The federal steel ministry has requested the trade ministry to investigate the influx of cheaper steel imports from China and Vietnam, Reuters reported last month.

Rapid economic growth and increased infrastructure spending have made India an attractive market for both domestic and global steel producers, especially as steel demand wanes in Europe and the United States.

T. V. Narendran, CEO, Tata Steel recently forecasted a rebound in steel demand in India from October to March, driven by growth in the construction sector, automotive industry, and railways.

(Reuters, Business Standard)