Steelmakers battle low prices as demand slips, stocks grow

Prices of steel used in cars and home appliances have fallen to a nine-month low in India and that used in construction and infrastructure to a near-five-year low with no clear path to recovery in sight.

- Dipali Banka & Abhishek Law

Weak demand from large infrastructure projects, and oversupply of steel domestically have led to lowest prices this fiscal.

(BLOOMBERG)

Weak demand from large infrastructure projects coupled with an oversupply of steel domestically has pushed prices to their lowest level so far this fiscal.

Prices of benchmark hot rolled coil steel have fallen to ₹48,275 per tonne-the lowest since February this year. Hot rolled coils are large steel sheets rolled into wide coils, used mainly in automobiles, home appliances and roofing sheets.

Rebar prices are in the ₹47,000 per tonne range, the lowest since November 2020, showed data from BigMint, a market intelligence firm. Rebars are long steel rods that reinforce concrete in building and infrastructure projects, accounting for about 45% of the market.

Steel executives maintain that steel prices will recover in the coming months but analysts are not very sure.