HRC, TMT steel price cut: CARE Ratings analysis
Steel

HRC, TMT steel price cut: CARE Ratings analysis

After undertaking several price hikes since August 2020 domestic steel companies have cut prices of HRC and TMT bars in the range of 6-9% m-o-m in February 2021. This came on the back of a correction in iron ore prices. NMDC cut iron ore prices for the first time in seven months by 11-12% due to increased production with the restart of operations at Donimalai mines in Karnataka. The mine has the capacity to produce 0.5 million tonnes of iron ore a month.

Steel prices in China which were driving global prices higher stabilised and remained mostly unchanged during the first half of February 2021 at $ 585 per tonne due to the Lunar New Year holiday period. However, prices increased in the second half to $ 634 per tonne, indicating strong underlying demand in China.

According to the report, other than China, prices have also picked up substantially in the US and European markets since January 2021. In the US market, steel prices have climbed at a nearly 13-year high as domestic supply struggled to keep up with a rebound in demand. The average HRC prices in the US stood at $ 1,271 per tonne in February 2021, which was nearly double the HRC price in India at Rs 51,750 per tonne ($ 709/tonne). The US has a 25% tariff barrier though.

Western Europe HRC price at $ 883 per tonne, ex-works was nearly $174 per tonne higher than Indian HRC prices. An imbalance in the demand and supply is driving steel prices higher. While demand for steel has rebounded sharply supply is lagging as mills are slow in returning to their pre-covid production levels and lead times are getting longer while inventories are low.

Read the CARE Ratings report here.

After undertaking several price hikes since August 2020 domestic steel companies have cut prices of HRC and TMT bars in the range of 6-9% m-o-m in February 2021. This came on the back of a correction in iron ore prices. NMDC cut iron ore prices for the first time in seven months by 11-12% due to increased production with the restart of operations at Donimalai mines in Karnataka. The mine has the capacity to produce 0.5 million tonnes of iron ore a month. Steel prices in China which were driving global prices higher stabilised and remained mostly unchanged during the first half of February 2021 at $ 585 per tonne due to the Lunar New Year holiday period. However, prices increased in the second half to $ 634 per tonne, indicating strong underlying demand in China. According to the report, other than China, prices have also picked up substantially in the US and European markets since January 2021. In the US market, steel prices have climbed at a nearly 13-year high as domestic supply struggled to keep up with a rebound in demand. The average HRC prices in the US stood at $ 1,271 per tonne in February 2021, which was nearly double the HRC price in India at Rs 51,750 per tonne ($ 709/tonne). The US has a 25% tariff barrier though. Western Europe HRC price at $ 883 per tonne, ex-works was nearly $174 per tonne higher than Indian HRC prices. An imbalance in the demand and supply is driving steel prices higher. While demand for steel has rebounded sharply supply is lagging as mills are slow in returning to their pre-covid production levels and lead times are getting longer while inventories are low. Read the CARE Ratings report here.

Next Story
Resources

Skyview by Empyrean is Making Benchmarks in the Indian Ropeway Industry

FIL Industries Private Limited, the parent company of Empyrean Skyview Projects that pioneered ropeway mobility solutions in India with Jammu’s Skyview Gondola, is currently developing the Dehradun-Mussoorie ropeway and is on track to complete Phase I by September 2026. The ropeway is set to be India’s longest passenger aerial monocable covering 5.8 km between the foothills of Dehradun in Purkulgam and MDDA taxi stand in the hills of Mussoorie in just under 20 minutes. The firm pioneered green mobility solutions in India with the development of the flagship Skyview Gondola in Jam..

Next Story
Technology

Creativity is for Humans, Productivity is for Robots!

On most construction sites, the rhythm of progress is measured by the clang of steel, the hum of machinery and the sweat of thousands. But increasingly, new sounds are entering the mix: the quiet efficiency of algorithms, the hum of drones overhead, and the precision of robotic arms at work. Behind the concrete and cables, an invisible force is taking hold: data. It is turning blueprints into living simulations, managing fleets of machines, and helping engineers make decisions before a single brick is laid. This is not the construction of tomorrow; it is the architecture of today – built on ..

Next Story
Infrastructure Urban

Bhartiya Urban Unveils ‘Bhartiya Converge’ GCC Enablement Platform

Bhartiya Urban has launched Bhartiya Converge, its latest business venture designed to become India’s premier platform for enabling Global Capability Centres (GCCs). The initiative offers an integrated ecosystem aimed at helping global clients gain a competitive edge in today’s rapidly evolving business environment. Focused on enhancing turnaround time and operational efficiencies, the company seeks to deliver better business outcomes powered by top-tier talent. Bhartiya Converge presents a customised and integrated suite of microservices that addresses the nuanced and evolving operational..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?