State-owned steel giant Steel Authority of India (SAIL) does not see any major correction in steel prices over the next two months even as the demand has started firming up from sectors like automobile and construction, a top official of the company said.
"In one or two months, we don't see any major correction in steel prices," said S K Roongta, chairman, SAIL.
Admitting that sales volumes of steel producers have increased during last two months, he said it only indicates there could be some price stability, not major corrections.
Roongta said there has been a partial revival in demand for steel from sectors such as automobile and construction, resulting in better sales volumes.
After negative growth in January, SAIL reported nine per cent surge in sales volume at 11.7 lakh tonnes in February.
Asked if the company would be able to achieve the same level of growth rate in the first quarter of the next fiscal, Roongta said it is unlikely.
"In February, we recorded 9 per cent growth (in sales volume), but in January we had a negative growth. In third quarter of 2008-09 also, we had a negative growth. I don't anticipate we can maintain that level of growth going forward in first quarter of 2009-10," he said.
