Indian domestic steel demand dropped by a cumulative 1.8pc in October and November, according to an Indian rating agency ICRA. Steel demand fell to 3.1pc from 6.9pc in the prior quarter, amid consumption growth of 7.5pc, ICRA said.
As demand for finished steel recovers, domestic steel producers have announced moderate price hikes in November and December from a price of Rs30,000-30,500 (US$ 424-430 approx), following an uptick in global steel prices since early November. Indian HRC prices are at Rs35,000/mt (US$493.8/mt) this week, up from Rs34,100/mt(US$481.1/mt) at the start of November.
Domestic hot rolled coil prices traded at a discount of about 3pc, or $16/mt, to the landed cost of imports from free trade countries in the first week of December, while Chinese hot-rolled coil offers have increased by $30/mt since November, giving domestic steel companies the headroom to raise prices by Rs1,500/mt.
Indian steel exports between April- November rose by 33.3pc to 5.753mn mt and imports decreased by 5.3pc to 5.077mn mt.