End of quotas slow Chinese steel buying

 Industry sources said, with the end of quotas in October there was only requirement based buying at present and most of sellers were also holding back.

 Better priced deals were possible in next few weeks before new quotas were announced in end-October or early November.

 Even during April-May, the prices had softened while the industry was awaiting the new Chinese quota due in May, which ultimately led to a downward revision of prices in the domestic market.

 Vinod Garg, director of Ispat Industries, pointed out that during April, May and June this year steel prices had declined by around Rs 3,000 per tonne in the domestic market.

 However, steel producers brushed aside the impact of softening in China on the domestic industry this time around.

 They said, this was a mid-term correction and there was no cause for worry as consumption in China was unabated.

 In fact in the first three months, January-March 2003, Indian exports of finished steel to China was at $293.84 million as compared to $262 million for 2002, as a whole.

 According to data provided by the Joint Plant Committee, out of exports of 3.7 million tonne in 2002-03, China alone accounted for 1 million tonne.

 Within the overall 10.18 million tonne of steel import into China for the current period, India has been given a quota for 1.8 lakh tonne of hot rolled coil and 4 lakh of cold rolled coils.

 Moreover, reports suggest that China