The steel manufacturers in the country are on a roll. Buoyed by a hefty improvement in steel prices, beginning January, the steel majors are experiencing a revival in fortunes. Even the financial insitutions are now no longer viewing the industry as a non-performing industry.
However, it remains to be seen whether the dream price run of steel products will actually be sustain the momentum in next few months.
Global steel prices have stabilised. However, international steel trading prices are likely to soften as a result of anti-dumping and other protectionist measures adopted by major consuming countries such as US, the EU and China. After testing the price levels that existed in April-July 2000 quarter, prices of hot and cold-rolled coils have now started easing downward.
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However, if the current price trends continue, steel majors like Tata Steel, Steel Authority and Essar Steel will benefit from the higher realisations and the strong order book positions for the remaining part of the current fiscal.
The fortunes of domestic steel manufacturers are also inexorably tied to the timing and extent of the government