The steel industry, after a periodic increase in prices over the last year, is bracing for a successive price cuts with rates of hot rolled (HR) products likely to soften further by Rs 500-700 next month.
Industry representatives said the next three-four days will be crucial as primary producers are trying their best to prevent a softening of rates, which now appears unavoidable.
The price drop is in line with the international trend and to a large extent can also be attributed to the situation in China.
Exports of value-added items, which were selling at $375-390, have come down to $340-350, while the commercial grade of HR coils is hovering around $310.
Sources said traders in China have resorted to distress selling, with the stocks lying at ports.
