The first six months of 2024 have seen a significant cooling of steel and raw material prices in India, with raw materials experiencing a more pronounced decline compared to semi-finished and finished steel products. Low-grade iron ore fines led the downturn, plummeting 32% domestically and 29% in export prices. This drop is largely attributed to weakened demand from China's property sector, a key market for Indian iron ore exports.

Coking coal prices also saw a substantial 23% decrease, driven by ample Australian supply and steady Indian demand. Indian steel mills are increasingly turning to cheaper met coke from Indonesia and China for spot requirements, with met coke imports rising 7% year-on-year.

In the metallics market, domestic direct reduced iron prices fell by 4%, while scrap prices remained relatively stable due to high freight charges stemming from geopolitical tensions. Billet and rebar prices saw a slight increase of 1-2%, as many secondary plants opted for maintenance rather than significant price reductions amid subdued steel demand.

Domestic flat steel prices experienced a minor 2% drop, reflecting weaker demand, particularly from the automotive sector, and sluggish export demand. Looking ahead, the industry anticipates a potential uptick in both demand and prices for raw materials and finished steel during the typically peak December quarter.