Steel prices likely to rise after falling for over five months
News: After a continuous week on week decline in steel prices for over five months, domestic integrated steelmakers are hiking prices for the first time in FY23, indicating a probable bottom to the falling trend. As per media sources, Arcelor Mittal Nippon Steel India (AMNS) has raised prices by ~ Rs 500-1000/tonne while other major leading players are likely to follow suit.
View: This uptick in steel prices comes at a time when margins of steelmakers have been shrinking due to lower realisation and elevated input costs. The price of HRC has declined by ~30% from a peak of Rs 78800 per tonne (ex-Mumbai) in the first week of April 2022 to ~ Rs 55500-56000 /tonne currently. Whether the price hike indicates the stemming of receding steel prices this year or if it only a small blip in the trend of decline will depend on how the market absorbs this price hike.