VOL X / ISSUE 06 / DECEMBER 2021
Indian steel prices see correction
India’s leading steel mills have announced a downward price correction. What led to the revision?
Global steel prices have been correcting for around a month now, dragged down by lower thermal and coking coal and met coke prices, exerting pressure on domestic mills. Even though Chinese steel futures have remained stable since early-November, prices are not likely to revise upwards soon because of China’s production cuts and an overall lack of demand as it, along with western countries, enter deep winter, a lean construction period. Moreover, China is not encouraging too much of carbon-spewing industrial activity ahead of the Winter Games.
Raw material prices have eased for Indian mills over November, putting less pressure on production costs. The Australian premium low vol HCC coking coal lost around $90/t over last fortnight while NMDC’s iron ore lumps prices dropped to eight-month lows while global spot prices of the benchmark Fe62% fines declined to $98/t levels from previous stratospheric highs of $230/t. Import prospects are up with the drop in global prices since landed costs are lower than domestic.
Our Cover Story focuses on the Indian Association’s current views and outlook. Read the full interview with Alok Sahay, Secretary General and Executive Head of ISA, inside.