----Interview with Utkarsh Shah
Executive Director
Giriraj Group
Established in 1946, Giriraj Group has grown into a leading business house with interests in a wide range of value-added iron and steel trading, including CR Coil/Sheets and HR Coil/Sheets in India. Through 10 subsidiary companies located in India, Dubai (UAE), South Africa, Malaysia, and South Korea, the group serves a large base of both local and international clients.
Asian Metal: Greetings, Mr. Shah. Welcome to this interview with Asian Metal. Could you please briefly introduce your company?
Mr. Shah: My pleasure. Giriraj Group is one of the leading distributors of HRC and CRC, with its headquarters in Gujarat, the growth engine of India.
Asian Metal: Which domestic steel mills do you cooperate with and how about your customer base?
Mr. Shah: We are an authorized distributor for Tata Steel, which is considered the bellwether of steel manufacturers in India. We purchase around 20,000 tons of steel from Tata Steel each month, including 15,000 tons of HRC and 5,000 tons of CRC. Our customer base consists of retailers, fabricators, and end-users across a broad range of industries, with each category accounting for approximately one-third of our business.
Asian Metal: What is your biggest challenge at the moment? And what advantages do you have?
Mr. Shah: Currently, the biggest challenge we face is managing fluctuating steel prices in a volatile global market. The uncertainty surrounding raw material costs and international trade tensions adds complexity. These market dynamics can affect the delivery schedules of domestic steel mills and influence the purchasing decisions of end users, making stock management more difficult. However, our strong relationship with Tata Steel and our deep understanding of the regional market provide us with an advantage. This enables us to offer reliable and timely supplies, even under challenging conditions.
Asian Metal: What is your outlook for CRC production and demand in India for 2024?
Mr. Shah: CRC production in India saw a moderate increase in 2024 compared to 2023, reaching about 12 million tons, against a production capacity of 145 million tons. Crude steel output also reached 145 million tons in 2024, a 3.6% increase YoY. This growth was driven by robust demand from all major industries, which rose by about 8% YoY. Additionally, some value-added products that were previously only available through imports are now being produced in India, easing the supply-demand mismatch that was once exacerbated by import dependence.
Asian Metal: On August 14, 2024, the Indian Steel Association initiated an anti-dumping investigation on HRC imports from Vietnam. What impact do you think this will have on the market?
Mr. Shah: The investigation aims to protect local manufacturers. If it leads to the imposition of duties, prices will likely rise as cheaper imported materials are reduced. Currently, the investigation has had little impact on pricing. However, if implemented, it would support local manufacturers, many of whom are planning significant capital investments. In 2024, India imported about 2.2 million tons of HRC, which is double the amount imported in 2023.
Asian Metal: Do you anticipate any significant changes in CRC production and demand in India in 2025?
Mr. Shah: The CRC market in India has been significantly impacted by a surge in cheaper imports in 2024, leading to a dramatic decrease in prices. This, in turn, has created challenges for domestic producers. Nevertheless, demand for CRC remains strong, particularly from sectors such as automobiles, infrastructure, and home appliances. The increasing availability of cheaper HRC for re-rollers has put downward pressure on the market, but overall demand continues to grow, offering a silver lining for the industry. The key challenge will be balancing the influx of supply with the need to maintain sustainable pricing for domestic primary producers. Steel mills in India are expected to further expand CRC production in 2025, and we anticipate production capacity will increase by 4-5% YoY. Meanwhile, demand could rise by 9-10%.
Asian Metal: What is your outlook for CRC prices in Q1 of 2025?
Mr. Shah: Given the increasing demand, we expect CRC prices to rise to INR58,000/t (USD677/t) by the end of the first quarter, up from the current INR54,000/t (USD631/t). Demand is likely to improve following the implementation of large projects after the Diwali Festival. Additionally, it is important to monitor the pricing and availability of key steelmaking raw materials, such as iron ore and coking coal, as these will have an indirect impact on CRC pricing.