For industrialization the use of metal is one of the major factor. Historically, the steel metal is one of the most valuable metal in the steel industry. For nation economic growth steel metal production and consumption are commonly used as indicators. Mainly the three groups comprise the Indian steel industry which are major producers, secondary producer and main producer and India is the second largest producer of crude steel in the world which is producing 121.29MT of Finished steel and 125.32MT of crude steel in the financial year 2023 as from the article of Bankbazaar.
AS on date of 19-September-24 the current steel prices in India is Rs. 41,590.00, which is witnessing the declining trend of 0.24%. In the financial year 2024 123-127MT of steel is expected to be produced in India which is an increase of 4-7% as mentioned on BankBazaar news.
The availability of raw materials like iron ore and inexpensive labor has been a major factor in the expansion of the Indian steel industry. Over the last 10 to 12 years, the steel industry has developed on a vast scale, with steel price news reflecting that domestic steel demand rose to 80% after 2008, while production increased by 75%. According to projections, steel production is expected to surpass 300 MT by 2030–31.
Types of Steel:
Carbon Steel:
The carbon steel is a combination of iron and carbon which make steel hard, strengthnful and ductile. There are three subcategories of carbon steel which is based on carbon content:
– Low Carbon Steel
– Medium Carbon Steel
– high Carbon Steel
Stainless Steel:
The Stainless Steel is a combination of chromium, Iron and other elements in which there is 10.5% of chromium which provides an excellent corrosion resistance. There are multiple types of stainless steel.
- Austenitic Stainless Steel
- Ferritic Stainless Steel
- Martensitic Stainless Steel
- Duplex Stainless Steel
- Precipitation Hardening Stainless Steel
Alloy Steel:
The Alloy Steel is a Carbon steel alloyed with other elements such as nickel, chromium and Vanadium and these three elements increases the steel properties, such as strength, hardness and corrosion resistance. The alloy steel is widely used in the automotive, machinery industries and in construction sectors.
Factors Affecting Steel Prices:
Demand and Supply: Like other commodity, due to low production or supply the price of steel grows up and due to its expanding applications, assessing current and projected supply and demand the level helps to determine the appropriate cost per unit.
Shipping of Material and Labour Cost: Steel comprises different components, primarily recycled scrap metal and iron ore and local production often results in lower costs but not for always. Transportation and shipping expenses like in south Africa, fluctuate depending on the factors such as the time of year and political situations. Sometimes, importing of raw material or steel itself can be more cost effective than domestic production. Apart from that due to pressure on the manufacturing industry which prioritize the local materials to boost jobs, which may lead to increase in the labour costs.
Global Economic Conditions and Geopolitical Factors: The state of the global economy and geopolitical events both play significant roles in influencing steel prices and the steel prices future in India. During periods of economic growth and increased construction activity, demand for steel tends to rise, potentially driving prices higher. Conversely, in times of economic downturns, demand may decrease, putting downward pressure on prices. Similarly, geopolitical events like trade disputes, sanctions, political instability, and natural disasters can disrupt the steel market, impacting supply and demand dynamics and causing price fluctuations.
FAQ’s:
- What are the factors that influence the Steel Prices?
Ans:The steel prices are influenced by factors such as demand and supply, material cost, labour costs, government policies, global economic conditions and more.
2. What are the components which primarily constitute steel?
Ans: The steel is primarily comprising recycled scrap metal and iron ore.
3. What is the steel price prediction India?
Ans: As BMI forecasted the steel prices could fall further in the coming years, which is averaging $540/MT by 2030 and $520/MT by 2033.
