| Even though the listed price of steel is yet to be revised downwards by manufacturers, the market price has come down and the sentiment has also started weakening. |
| The market price of long products has come down by Rs 2,500 to Rs 3,000 per tonne, across categories. The price ease came after some of the steel majors hiked prices by as much as Rs 4,000 per tonne, last month. |
| While billets and ingots have dipped by more than Rs 3,000 per tonne. Flat prices are still holding on, but there is no sign of prices moving up, in the near term. |
| However, industry representatives expect flat product prices to remain stable, even though supply is more than the demand. |
| "We expect that the credit limit which was freezed in China for major steel projects will be eased after July 15" said a source. |
| Moreover, China Iron and Steel Association (CISA) had also forecast a net import of 40 million tonne, this year. |
| Steel producers however felt that once the situation in China eased, which they considered to be a foregone conclusion, the dynamics of the steel industry would change for its favour, once again. |
| But, prices in China are way below prices prevailing in Europe and the US. In fact, major steel producers were now banking on the demand from Europe and the US. |
| However, despite the demand from these markets, a general softening was seen across the globe, largely due to the China factor, which was having an indirect adverse impact on the global steel market. |
| The user industry sources were of the opinion that the softening in international prices should be reflected in domestic prices. |
| "Producers should bring down the listed price, as prices in the international market were below the market price in the home market" they said. |
| According to them, while international hot rolled coil (HRC) prices were at Rs 21,000 per tonne, domestic listed prices were at Rs 25,000 per tonne. |
Top Section
Explore Business Standard