Steel prices dip abruptly in north

Steel prices have gone down drastically - by Rs 400-500 per tonne - across the board in the last one week in north India, immediately after approximately two-week of power supply disruption disgruntled steel makers.

MS ingots is currently quoted in the range of Rs 21,100-21,200 per tonne. The price of plate (5-10mm) has declined by Rs 1,800 per tonne to Rs 28,000 in Mandi Gobindgarh from Rs 29,800 per tonne in May.

Similarly, HR coil price is down by Rs 2,100 to Rs 27,500 per tonne, while HR sheets by Rs 4,200 to Rs 27,500 per tonne compared to Rs 31,700 per tonne in May.

There have been no significant changes in prices in the Mumbai physical market, as imported goods are flooding the market, while rising demand from construction and other infrastructure industries are picking up the extra material supplied.

"Despite a rosy picture painted by producers and consumers of steel, prices have declined today due to general downward trend in the industry. No buyers are coming forward with orders, as in September everybody usually wants to avoid placing fresh orders," said Anil Suraj, managing editor, Steel Town Weekly.

"Prices are going to remain stagnant for some time now and will start recovering probably in the first week of October when general demand season starts," Suraj said, adding, "power supply has been restored now, but steel production is yet to normalise at deprived steel units."

However, Moosa Raza, president, Indian Steel Alliance, was a little optimistic. He said, "We are always bullish towards steel prices. The current phase of decline is temporary which would recover soon."

"Integrated steel producers are expanding production capacity as they see a huge potential in steel in the coming days, especially in India, mainly looking at infrastructure development plans of the government," Raza said.

When asked about incorporation of new members, who have steel production less than 2MT, in the Alliance, he said, "We haven't yet thought anything on this topic. On Tata Steel turning towards the Alliance membership again, Raza said the Alliance is always hopeful.