Steel prices may fall further by another Rs 1,000 a tonne in June due to a softening global trend originating from the financial crisis in Europe and demand slowdown ahead of the monsoons, an official said today.
Prices of long steel products, mainly consumed by infrastructure and construction firms, have already fallen by Rs 5,000 a tonne since April.
"It (steel prices) may further fall by Rs 1,000 a tonne next month mainly due to the present European crisis and slackening demand ahead of monsoon," Steel Secretary Atul Chaturvedi told PTI on the sidelines of a conference here.
The conference was organised to highlight the "achievements" of the ministry during the first year of the UPA-II government.
Industry observers said that the crisis in Europe may adversely impact international steel prices, which could, in turn, affect domestic rates.
While steel prices, hovering in the range of Rs 32,000-Rs 47,000 per tonne, have softened in recent months, they still rule at a premium of about 30 per cent over the year-ago period.
The high prices are attributed to a 90 per cent increase in prices of vital inputs for steel manufacturing, such as iron ore and coking coal.