In traders’ market, the domestic HRC prices slipped by 0.5% WoW to INR70,670/t on average while prices in the secondary market dropped Rs. 2,000/t last week on account of festive season but didn’t really cheer the buyer as the prices were still high.
Domestic iron ore (63% grade fines) prices in Odisha are up by 20% MoM to INR7,000/t. The firm demand is confirmed by the positive trends in iron ore e-auction. This was double checked out with NMDC’s notification on prices bottoming out. Landed price of imports still stays significantly above domestic prices, at a premium of 10–12% to the domestic HRC price.
Analysis from Q3CY21 results of SSAB, Erdemir, Posco and Russian companies suggests expectations of improvement in realisation/shipments in Q4CY21, prices may stabilize as restocking in the European market continues and energy prices are likely to stay relatively firm in the near term. The automotive sector is still impacted by the semiconductor chip shortage which may also impact the metal sector in near term. Despite demand uncertainty and an attempt to regulate commodity prices in China, there seems to be a limited downside to regional prices on account of exports remaining low.
Steel prices remain steady everywhere else except China which shows weakness in domestic steel prices in China owing to the government’s endeavours to regulate prices. The steel and aluminium prices and supply sides are also impacted by the plan for carbon emission peak by CY30. In Europe and the US markets, the spot prices have started gaining momentum again as restocking demand for Q1CY22 shipments gathers steam. Domestically, steel prices are consolidating after surging 10% in the past month.
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