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Indian steel input material market surprises on a Black Friday
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Saturday, 17 Sep 2011
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The mystery of pencil ingot prices deepened on Friday when it exhibited an uncanny resilience on day marred by hike in lending rate by RBI to rein inflation. Typically such a move is morale buster having a deflationary impact but a contrary move defies logic.

Market had been agog with expectation of hike in lending rate for some time however with spiraling inflation touching 9.78 % in July the fear of major hike in repo rate seemed distinct.

With a 25 basis point increase in repo rate and reverse repo rate market took it positively with signs of RBI hawkishness ebbing in the coming days. As monsoon recedes and seasonal demand expected to unfold soon pencil ingot prices erred on the plus side.

Reading between the lines the RBI declaration had underpinnings of another round of interest hike before the culmination of Q3 as the inflation figure is nowhere near the targeted 6-6.5%.

Prudence and wisdom indicates caution rather than optimism. The only reprieve for long market in heavy infrastructural investment and growth seemingly out of vicinity the hike can be yet another round of speculative rumblings bound to perish with the same alacrity.

Ever increasing cost of capital and the ensuing liquidity crunch one cannot help being optimistic. Finished steel TMT bars and structural remained unresponsive to the eccentricity of input market.

Sponge Iron

Location Change
Kolkata200
Raipur500
Bellary-200
Raigarh300
Rourkela200
Bangalore 0


Change is on 16th September as compared to 15th September 2011
Change is in INR per tonne

Pencil Ingot

ChennaiChange
Mumbai300
Chennai0
Kolkata181
Mandi50
Raipur200
Alang200
Kanpur0
Rudrapur0
Ahmedabad0
Ghaziabad200
Muzzafarnagar227
Hyderabad900
Raigarh200
Durgapur91
Nagpur181
Jamshedpur300
Jaipur200
Rourkela0
Bhiwari200
Ludhiana181


Change is on 16th September as compared to 15th September 2011
Change is in INR per tonne

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)


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