JSW Steel, Jindal Steel and Power, Steel Authority of India share prices have declined 5-12% during last one week . While the market sentients remain weak, the correction in share prices also has been led by a regular decline in steel prices. Channel Checks by various Brokerages suggest Steel prices in the country have dipped to multi- month lows BNP Paribas Channel checks suggest that the domestic hot rolled coil (HRC) prices that have been falling since September 2023, reached ₹52,700 a tonne during the week ending March 6, 2024, down ₹900 a tonne week over week.
The weekly average price also had dropped to its lowest point since December'2023. Also Read- Adani Green share price jumps over 9% as subsidiary enters into power purchase deal with SECI The pressure is being exerted by falling international steel prices amidst tepid demand. More over demand in China, the world's largest consumer of commodities has been declining leading to higher exports from China.
China Domestic HRC prices decreased by $12 a tonne month-on-month and $ 6 a tonne week-on-week for the week ended 8-March 2024. Since October 23, the monthly average price has not been this low. Some decline in Coking coal and iron-ore prices is supporting profitability.
Nevertheless with support to profitability coming from declining commodity prices, further down side in steel prices in China cannot be ruled out, said analysts. The steel exports from China already rose 30% year-on-year to 16 million tonne (Mt) over January-February 2024, much higher than 12.2mt over January-February 2023, suggested BNP data. This is the highest level of exports for the two months combined since 2016 said BNP analysts.
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