Steelmakers warn of Q3 revenue drop, pin hopes on Q4 rebound
Subscribe to enjoy similar stories. For India's steelmakers facing the lowest prices in the last four years, things may get worse before they get better. Top manufacturers including Tata Steel Ltd and the Steel Authority of India Ltd (SAIL) are bracing for a challenging December quarter, with a recovery expected only in the fourth quarter.
Despite hints of a recent rebound, average selling prices in the December quarter are expected to be lower by ₹1,500-2,000 per tonne from the previous quarter. “This is largely because in Q2, July prices were quite high and then dropped till September. In October, steel prices started going up, but we don't expect prices in December to be the same as what it was in July," Tata Steel managing director T.V.
Narendran said at an analyst call. Read this | India's steel prices plunge to four-year low, most affordable since covid-19 pandemic In the first half of FY25, a surge of over 51% in steel imports hammered local prices. In September, benchmark hot-rolled coil (HRC) prices fell to an average of ₹48,029 per tonne, slipping below the ₹50,000-per-tonne-mark for the first time since November 2020, according to data from BigMint, a market intelligence firm.
Prices improved marginally to an average of ₹48,222 per tonne in October. Domestic steel consumption in the September quarter stood at 37.1 million tonnes, up nearly 12% year-on-year, largely driven by demand from infrastructure, construction and automotive sectors. Local production, however, grew just under 3% to 36.2 million tonnes as imports catered to a bulk of the incremental demand.
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