The suspense over February pricing ended in whimper with the mills opting for roll over. Succinctly it is tactful move by the Indian mills averse to taking chances when the demand incubating after harrowing Q3.
Key demand driving parameters from infrastructure and manufacturing sectors yet to blossom prudence was sensible. Undeniably Q4 portends to be break from the mossy Q2 & Q3 with most of the economic indicators showing a healthy trend.
With inflation dipping to and encouraging 7.4% in November and the IIP making a turnaround at 5.6% economic headwinds are ebbing for a change. HSBC Markit PMI at 57 points in January has sent rankles in the already ascendant market. Auto sector has shown encouraging tendency with most the major recording accelerated production and sales.
On the flip side an uncanny rally in INR by 4% in the last fortnight has raised alarm bells for the Indian manufacturers when the global long and flat product prices have lost about USD 30-40 per tonne after the vacation.
Mills have acquiesced for status quo in the trade off.
ET quoted Mr Jayant Acharya sales & marketing director at JSW Steel as saying that “The outlook for the local industry is not bleak as inflation seems to have peaked and customers are returning to the market. Demand has been good in December and so far, has been healthy in January also. We expect sales to pick up this quarter. But the situation for a price hike looks unlikely.”
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)
