After rally, steel and iron ore on course correction led by higher supplies

Price correction started mid Jan, with secondary producers dropping drop long product prices by Rs 7,000-8,000 a tonne; primary producers followed in Feb, pruning by Rs 2,000-3,500

After a continuous rally since the unlocking in July, prices of steel and iron ore have started easing on higher supplies.

The correction in prices started in the middle of January, with secondary steel producers dropping drop long product prices by Rs 7,000-8,000 a tonne; primary producers followed in February with a reduction of Rs 2,000-3,500 a tonne. 

Jayant Acharya, director (commercial & marketing), JSW Steel, explained that the main reason behind the softening was that supplies of long products had increased in the domestic market. 

“Long product supply in Q1 was a little less than 7 million tonne. The