Similarly, there has been a turnaround in Indian domestic steel prices.
SEATTLE (Scrap Monster):Â Several key factors have worked in favor of steel industry in India over the past few months. Here is an analysis of five among those factors.
The Chinese market has been hampered by ailing property market and lack of mobilization due to people forced to stay at their homes due to rising cases of Covid-19 cases in the country. The government’s focus on these two issues have brought about drastic changes, which in turn has benefited the steel industry as well. As a result, the HRC prices, after falling from its peak of $860 per tonne during early-2022 to nearly $500 per tonne, have again rebounded to levels of $620-$630 per tonne.
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Similarly, there has been a turnaround in Indian domestic steel prices. The domestic steel prices in the country had hit a premium of INR 8,000, making imports from China cheaper. However, things have changed rapidly, with imported Chinese steel now at a premium when compared with domestic steel.
The surging iron ore prices tend to support steel commodity prices. Also, domestic demand continues to remain strong. As per industry experts, steel export volumes are expected to pick up in the coming quarter. According to industry data, restocking of steel has recommenced after a brief pause, which also augurs well for prices of the commodity during the forthcoming months.
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