CRISIL Foresees Correction in Domestic Steel Prices

By the end of the fiscal, steel prices are likely to touch INR 60,000 per tonne.

SEATTLE (Scrap Monster): CRISIL Research spots signs of fatigue in domestic steel prices in India. The prices had been on a rally during the past two years. Some moderation in prices is on the cards with the onset of monsoon. In fact, the prices had actually started to correct during early-2022, but the correction was limited due to heightened geopolitical crisis triggered by the Russia-Ukraine war.

According to Hetal Gandhi, Director, CRISIL Research, higher input costs and buoyant exports have prevented sharp fall in steel prices. The tight supply situation also supported prices. The export realization premiums have also surged higher significantly to around $75 per tonne during early-May this year.

CRISIL Research expects the Indian steel exports to key overseas markets to remain high during the initial quarter of the current fiscal year. However, falling steel prices will eat into port of approximately 13-14 million tonnes during the whole fiscal.

By the end of the fiscal, steel prices are likely to touch INR 60,000 per tonne. Also, CRISIL predicts 3-5% surge in flat steel prices, as compared with 50% during last fiscal.

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