The Demand in The Indian Market Has Improved Slightly Due To The End Of The General Election, But The Improvement Is Limited Due To The Influence Of Off-season Factors

Currently, India is in the period of the end of the general election, and market transactions are gradually recovering and demand is improving. At the same time, favorable macroeconomic policies may drive a strong atmosphere of positive sentiment in the steel market. However, according to feedback from local traders, even though there has been some improvement in demand due to the end of the election, the overall improvement in demand is not significant due to the problem of monsoon arrival from June to September, which usually affects demand and downstream construction activities.

  In addition, another factor affecting demand is the possibility of oversupply after steel mills resume production comprehensively in July. It is reported that most steel mills in India, such as JSW Steel, the largest steel company in India, and AM/NS India, are currently undergoing annual maintenance. The overall market supply is tightening, with an impact of approximately 300000 to 1 million tons. Therefore, in the current seasonal demand off-season, the concentration of steel mills resuming production may lead to oversupply.

  The local market hot coil quotation in India is between 54000-61000 rupees per ton (approximately 646.56-730 US dollars per ton); In terms of import market, China’s hot coils are priced from India at $550/ton CFR India, Japan’s price remains stable at $600/ton CFR India, and Vietnam’s price is around $590-595/ton CFR. The import price is more competitive compared to India’s domestic resources.