Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Indian primary steelmakers have cut prices for hot-rolled coils (HRC) and rebar by Rs1,200-2,000/mt ($16-27/mt) for July deliveries. A slowdown in domestic demand amid monsoon rains has impacted prices, state Davis sources. The decline was also driven by a dip in HRC prices in export markets, along with increased supply by large mills with capacity utilization of around 85-90pc despite weak sales.


Mills have been consistently raising flat products prices since June 2020. But, a few mills started given discounts of Rs1,000-1,200/mt ($13-16/mt) from mid-June 2021 to induced rebar sales.


They believe construction activities are yet to gather momentum with labor availability lower than 100pc at most sites. Activities will gain pace only by August-end or early September.


Among large-scale steelmakers, JSW Steel has decreased prices by Rs1,200-1,800/mt for both, long and flat products depending on the market. While Steel Authority of India Limited (SAIL) has also decreased prices in the same range.


RINL has decreased rebar prices by Rs1,500/mt, structural products by Rs500/mt, and other long products by Rs1,000/mt. JSPL has decreased prices in rebar by Rs1,500-2,000/mt and HRC by Rs1,000-1,200/mt.


After the price cuts, primary mills’ rebar will cost around Rs50,000/mt ($673/mt) ex-Mumbai for projects, while the retail price would be higher by Rs1,000/mt. HRC prices would be around Rs67,500/mt ($908/mt) ex -Faridabad.


Domestic mills are offering HRC at around $920/mt fob India, down from $970/mt in the previous month.


International iron ore prices have shot from $108/mt in June 2020 to an all-time high of $233/mt in mid-May 2021, to soften at $220/mt.


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