Search on
News Title
News Details
Reports/Directory
Glossary
Title_head
Indian flat market submerges despite price hike by mills
1946 times viewed.
Friday, 16 Sep 2011
EmailButton
Pdf_button

September was widely perceived to be turn point for steel prices, especially for flat products, in India with the waning of monsoon and pick up in seasonal demand.

Riding the crest on a premature enthusiasm most of the Indian steel mills hiked prices in the range of INR 500 per tonne to INR 1000 per tonne in September. The curtailed production owing to iron ore and gas shortage influenced the price hike by few mills but the temptation was primarily inspired by seasonality.

On one hand if it was the desperation of the mills to wriggle out of burgeoning cost escalation on the other hand depreciating rupee provided the mirage of market capitalisation at home as imports became dearer losing sight of the market realities.

With auto sales plummeting MoM and borrowing cost escalating with RBI hiking interest rates 11 times in the last 18 months, the ramifications took a pandemic proportion engulfing consumer durables and construction sector as well.

In the backdrop of gloomy economic and market outlook with industrial production plummeting to merely 3.3% in July lowest in 2 years coupled with an equally disappointing GDP of 7.7% expecting a magical recovery can be termed cynical.

It is learnt that the stock levels with the mills and buyers are low but need based buying is preferred to limit the risk.

Most of the mills have already retraced the wrong foot by giving rebates and quantity based discounts to the tune of INR 500 tonne to 1000 per tonne.

Another interest hike in the offing on 16th there won’t be any respite in September. More so Pitra Paksh lasting till 28th September even the divinity is unfavourably disposed.

Category08-Sep15-SepChange
PI - Narrow Plates82568240-16
PI - Wide Plates85988576-22
PI - Hot Rolled83408317-24
PI - Cold Rolled95619533-28
PI - Galvanized92679247-20


PI-Product Index
(www.steelprices-india.com)

If volatility in steel prices is affecting your business, keep tab on market realities and trends by subscribing to www.steelprices-india.com, which is a comprehensive portal that provides domestic pricing information for benchmark steel products in each category at select location in India on a regular basis 5 days a week and international price levels on a weekly basis.

Products covered
1. Input materials - Iron ore, scrap, sponge iron, pig iron pencil ingot, billets and blooms
2. Long products - Rebar, wire rod, angle, channel and joists
3. Flat products - Narrow plates, wide plates, HR, CR and galvanized
4. Others - Pipes

How to subscribe
1. Register at www.steelprices-india.com and pay on line or ask for invoice
2. Send mail to admin@steelprices-india.com.
3. Call at 0091-124-3007891/2/3

(Sourced from www.steelprices-india.com)

This is alternative content.

/
Arcelor
More Indian News