Having touched historical peak levels in October, Indian steel prices are likely to face pressures in the near term from falling international prices, India Ratings and Research (Ind-Ra) said in a report on Wednesday, December 1.
While prices are at a high point, they are likely to face pressure from a continual decline in global HRC prices due to sluggish Chinese demand and declining raw material prices,” the rating agency said in the report.
Ind-Ra expects Chinese crude steel output to be weaker in the second half of 2021 than in the first half on account of the strict government measures to curb production. Also, India’s crude steel production rose by 2.4 percent year on year and 2.5 percent month on month to 9.8 million mt in October 2021.
According to the rating agency, India’s steel production growth in the second half of 2021-22 will be supported by strong consumption growth and the preparedness of the sector participants with new capacities. India’s finished steel consumption was 1.1 percent lower year on year but 8.2 percent higher month on month at 8.19 million mt in October this year.