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.

Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

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
Real Estate

Colliers India Transacts 207,000 sq ft office space at Embassy TechVillage

Embassy Office Parks REIT, India’s first listed REIT and the largest office REIT in Asia by area, announced that it has signed an Agreement to Lease (‘ATL’) with global cyber security company Rubrik at Embassy TechVillage in Bengaluru.Colliers, a leading global diversified professional services company, specialising in commercial real estate services, engineering consultancy and investment management facilitated the transaction for Rubrik.Located on Bengaluru’s Outer Ring Road, Embassy TechVillage is one of Embassy REIT’s flagship office parks which offers world-class office spaces, ..

Next Story
Infrastructure Urban

Ensemble Infrastructure India Appoints Suman Saha as Director of Design

Ensemble Infrastructure India Ltd, a leading workplace design and build fit-out company, has appointed Suman Saha as its new Director of Design. With 25 years of experience in the industry, Suman is recognized for his innovative approach and excellence in design leadership.Working closely with the CEO, Suman’s appointment will enhance the company’s design communication across multiple touchpoints, ensuring smooth collaboration between clients, designers, and execution teams for superior project outcomes. Under his guidance, Ensemble will focus on creating workspaces and design labs that em..

Next Story
Products

Ribbon Vanity by Küche7: Fluid Design Meets Everyday Elegance

Küche7, pioneers in luxury stainless steel kitchens, have unveiled the Ribbon Vanity, a graceful creation that transforms bathroom spaces with its soft, flowing design and understated sophistication. Inspired by the fluid form of a ribbon, this vanity combines smooth finishes, clean lines, and gentle curves, offering a timeless aesthetic that seamlessly complements diverse interior styles.Available in a refined blush pink hue, the Ribbon Vanity effortlessly merges functionality with elegance. With thoughtfully designed storage options, it ensures that bathroom essentials are neatly organised ..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000