Indian flat rolled market on the rise

Indian flat rolled market on the rise

Indian market has seen a dramatic uprise of flat rolled products, since the last couple of weeks. The prices of cold rolled coil product reached $450/mt levels as per the latest situation on FOB basis. The galvanized market in India seems to have weakened however, industry specialists believe that this weak state of the market will not be long lasting due to the forthcoming Monsoon season. This year, stronger than ever Monsoon rains are expected in the country which will give a lift to the demand for galvanized steel products used for corrugated roofing sector. It can be said that monsoons have an activating effect on the Indian economy. In order to take precautions against a supply shortage or a sharp price increase in such a case, Indian Government is putting pressure on the country's steel producers not to focus on exporting material, but on supplying the growing demand of the local market instead. The reason behind Indian Government's such pressure might also be its concern regarding the infrastructure projects on which it has authorized large budgetary spending in advance of next year's national elections. Accordingly the major steel producers of the country are slowing down their export deliveries, only performing their obligations under the existing contracts. Furthermore, due to the recent warning from Chinese Ministry of Commerce, Indian mills such as Essar, SAIL and Tata Steel also slowed down their exports to this destination as well, as they have already exceeded their 3% limit for hot rolled steel sheet in coils under the safeguard measures in force in China.