Steel firms under pressure from rising imports, drop in exports

TRACKING THE PRICES Between 47,000 and 51,000 per tonne: Range of HRC prices; a decrease of ₹1,000 per tonne in the past three days *50,000-51,000 per tonne: BF-rebar trade prices ex-Mumbai. During August-end 2024, it hit three-year low level at 49,500 per tonne Rebars are most likely to have been impacted by the slackening of construction activities during monsoon India exports were constrained as key markets were either flooded with Chinese exports, experiencing weak demand, or facing trade restrictions, Ranjan Dhar of AM/NS India said.

- ISHITA AYAN DUTT AMRITHA PILLAY

Indian steel companies are facing challenges amid rising low-cost imports, limited export opportunities, seasonal weakness in demand, and unfair dumping by surplus countries like China. These issues weigh on steel prices and threaten to hit domestic manufacturing.

According to market intelligence and price reporting firm, BigMint, hot-rolled coil (HRC) prices have decreased by ₹1,000 per tonne, now ranging between ₹47,000 and ₹51,000 per tonne. HRC is a benchmark in flat steel. The trade level represents the lowest point for the current financial year, and the market is showing signs of volatility, marked by a significant decline in demand, said an analyst with the firm.

In long steel, BF (blast furnace)-rebar trade prices are currently hovering at ₹50,000-51,000 per tonne ex-Mumbai, Big Mint data showed. It hit three-year low levels at ₹49,500 per tonne during August-end 2024 on a slowdown in demand. Rebars are most likely to have been impacted by the slackening of construction activities during monsoons.