Price lift for steelmakers; Decadal high domestic steel prices


    New Delhi, Jan 11 | Domestic steel prices defied predictions and ascended through the December quarter as three tailwinds converged — high global prices, tight domestic supply on account of iron ore shortage, and healthy demand growth, Crisil research report said on Monday.

    Accordingly, steel makers have raised the prices of benchmark hot-rolled coils (HRC; average monthly price) multiple times since August, rising by as much as Rs 13,800 per to Rs 51,050 per tonne in December (37 per cent on-year growth).

    Importantly, despite this material increase, domestic prices are still 6-8 per cent below global landed prices.

    Put another way, there is a room to raise the domestic prices further given they move in sync with the world trend.

    China HRC f.o.b. (free on board) prices, after plunging to $409 per tonne in April from $499 per tonne in January 2020, rebounded to $647 per tonne between April and December 2020.

    Global prices also touched an 8-year high in December on healthy demand and cost push from soaring iron-ore prices. Chinese crude steel production increased eight per cent in the period, while exports and inventories remained low indicating robust demand growth there.

    We expect steel prices to remain high in the January-March 2021 quarter with a sequential price hike of Rs 7,000- 8,500 per tonne, the ratings agency said in its research report.

    Consequently, flat steel prices are seen 14-15 per cent higher on-year this fiscal, the report added.

    Domestic demand recovered to the pre-pandemic (February) level in August itself with normalisation of activities in the construction and consumption-linked sectors, but a full-blown recovery was seen only in November when sales volume surged 11 per cent on-year.

    The demand momentum should continue in January-March. Growth will also be bolstered by the statistical low-base effect of fiscal 2020, the report said.

    That would limit the contraction in steel demand this fiscal to 9-11 per cent, compared with our previous forecast of a 17- 20 per cent de-growth, the report added.

    On the raw materials front, domestic iron ore supply could not match demand from steel mills as only 6-7 of the 19 auctioned mines in Odisha could begin mining operations. Of these, most were won by steelmakers for captive consumption. The 19 mines used to sell 65-70 million tonne of iron ore to merchant markets in eastern India. The tight supply augured well for domestic iron ore prices, which more than doubled from May-June levels to Rs 4,360 per tonne in December. However, it remains 60-65 per cent cheaper than landed iron ore prices.

    Coking coal prices, on the other hand, have declined, led by low procurement from China amid stable supply. Improved realisation, healthy demand and lower coking coal prices augur well for the operating margins of steel mills, especially in the second half of the current fiscal. As a result, large steel mills, excluding the public sector ones, should see a 550-650 basis points (bps) Ebitda margin expansion this fiscal, Crisil said.

    Given all this, we expect the large steelmakers (excluding the public sector ones) to clock an impressive 800-1000 bps improvement in their Ebitda margins (on-year) in the second half of this fiscal, riding on the tailwinds of a 35 per cent increase in domestic steel prices, a 30-35 per cent decline in coking coal prices, and surging demand, the research report said.

    Source: IANS

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    Social Media Expert And Founder Of Aapno Rajasthan Durgesh Dhaker Gives His Two Cents On Growing One's Reach Online

    Social Media Expert And Founder Of Aapno Rajasthan Durgesh Dhaker Gives His Two Cents On Growing One's Reach Online

    “Work and you’ll get what you need; work harder and you’ll get what you want”.

    The above-mentioned quote speaks volumes about the courage of those who have made substantial breakthroughs in their life with hardwork and dedication.

    One such committed individual who is preparing several notable names with their social media reach is Durgesh Dhaker. An agile and someone who keeps himself upbeat with the happenings in the country, Durgesh has acquired expertise in carving the social media strategies for various stalwarts. He is also the founder of Aapno Rajasthan

    facebook page with more than 1 million likes which he gain within very short time with his expertise.

    Coming from the beautiful city of Chittorgarh in the land of Rajasthan, Durgesh Dhaker is making his parents and fellows pride of his strides and success acquired through hustling with perseverance. His social media expertise enables him to give his top tips for growing one’s social media presence, it is as below-

    1-Create a network

    Social media comprises of a huge number of people who need to build their reach, subsequently, it turns into a fiercely cutthroat spot where every individual is attempting to draw in mass consideration, thus it is basic that we upgrade our activities to pick a specialty which suits our inclinations, it ought to be something that you are prepared to deal with for quite a while of your life.

    Zero in on making an intuitive substance that can be discovered when somebody looks for it, the most ideal approach to do is to is utilize significant hashtags on Facebook, Twitter, etc.

    2-Create steady, quality posts that are relatable

    Today, the web has enough data however we can help our supporters discover quality data that isn’t excess by posting relatable substance according to our niche, recall, forthright, valuable, and quality substance is as yet restricted on the web, consequently assuming you give individuals what they are searching for reliably, gradually and slowly, you will see considerable development in individuals who follow you.

    3-Social media showcasing/connecting websites

    Social media marketing is perhaps the most ideal approach to get ideal reach online, to see speedy outcomes, posting cool videos, and opinion on the latest happenings are some methods which can be deployed. If one has a website on their name or related to their field of work then those can be attached on social media profiles to promote them better.

    In a nutshell, we can conclude that, according to Durgesh Dhaker, the top way to grow your social media presence is by being relevant and consistent with the content that is suited to the tastes of your target audience, linking several web pages and blogs to boost traffic and last but not the least correct marketing of your content that can lead to conversions.


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