The government expects steel prices to soften a bit in the next two weeks as demand in the domestic market and bullish sentiments are likely to ease, a senior official said today.
"I think steel prices by itself will move downwards in the next 10-12 days. The prices went upwards due to the demand push and positive sentiments. So, now as the sentiments will even out, prices will fall," Steel Secretary Atul Chaturvedi told PTI.
However, he agreed that the recent hike in steel prices by companies like SAIL, Tata Steel were partly speculative in nature but maintained that rates have not touched any alarming level.
"All these companies come out with some logic to justify the increase as well as decrease in prices," he remarked, when asked if the rationale of high input cost pressure, given by firms with captive raw material reserves, was justified.
"Steel prices have not reached any alarming level. It (SAIL's steel prices) has gone down till October by about Rs 2,200 a tonne and now have gone up by Rs 2,600 per tonne, a net change of Rs 400, he said, rubbishing any inflationary concerns.
"How can there be any concern regarding inflation. Prices are still lower than the ten-month average," Chaturvedi added.
Domestic steel makers including SAIL, Tata Steel have increased prices of their products by about Rs 3,500 a tonne in the last fortnight.