Flat Steel is commonly used in white goods industry, consumer durable industry and automotive industry. Flat Steel comprises of Hot Rolled Coil, Cold Rolled Coil, Hot Rolled Plates and Galvanized Coil which are rolled from semi-finished steel products such as Slabs, Ingots or Billets in the slabbing mills. Flat Steel market in India is dominated by Steel Authority of India (SAIL) followed by JSW Steel, Essar Steel, Tata Steel and Jindal Steel and Power Limited (JSPL).
SAIL, one of the largest Flat Steel manufacturers of the country has recently increased prices for HRC/CRC by around Rs 1,750/MT and GP prices by Rs 1,000/MT w.e.f September 1, 2013. Current prices for HRC 2.5 mm are around Rs 42,500-43,500/MT (inclusive of all taxes) and CRC is at Rs 47,000/MT (inclusive of all taxes) in North India. While in South India, HRC & CRC is trading at around Rs 45,900/MT and Rs 48,700/MT (inclusive of all taxes) respectively.
SAIL has witnessed a growth of 16% in its crude steel sales for August’13, which stands at around 10.86 lac tonnes compared to 9.38 lac tonnes in the same period last year. The company has recorded a sales growth largely on the back of increase in Flat Steel sales which went up by 26%.
Import-Export Outlook: Import and Export scenario of flat steel products are going through an unstable phase this fiscal as compared to the last fiscal.
Total amount of Flat Steel imported in the country in FY 13 was 4.8 MnT which had witnessed a growth of 11% in comparison to FY 12, which was around 4.35 MnT. However, in FY 14, Flat Steel import has seen a sharp decline owing to the fall in rupee value, slow infrastructure growth and poor demand from automobile industry.
On the other hand, Flat Steel exported out of the country in FY 13 was 3.97 MnT compared to 3.39 MnT of FY 12 witnessing a growth of 17%. This increment shows that the country is now producing export quality material meeting international demands.
Demand for steel in the country is expected to improve in Q4 FY 14, owing to increase in construction activities as projects may expedite completion before closure of the financial year.