Steel price to go back to $600/tn: Tata Steel MD

B Muthuraman, managing director of Tata Steel, today indicated that
steel price would revert to its previous levels of around $600 per tonne after having dipped to about $500 per tonne as de-stocking by some countries would be over in about three months.

"Some countries are de-stocking. This would be over in about three months. The price, which are now in the range of $500 per tonne, would then go back to around $600 per tonne," Muthuraman said.

He said the spurt in demand had led to soaring hot-rolled coil prices, but the recent fall in prices was not due to fall in demand but because of the de-stocking.

"The rise in steel prices was also due to shortage of raw materials. After the inflow of investment in the coal and iron ore sector, the shortage has been met. The correction of raw material prices would take about 1-1 1/2 years, which, in turn, would ensure price stability," he added.

Muthuraman said the demand-supply picture was clear for the next 15-20 years, and the price structure in the market would also therefore not witness sudden spurts and unpredicted falls.