The last couple of days have witnessed a quiet revival in pencil ingot prices which has gone largely unnoticed in the monsoon melancholy of long product market. The silent march nonetheless has given some reasons for the bedraggled market to cheer up.
Factually the rally defies reasonableness but it is reflection of the swinging sentiments in the commodity trading rather than anything else. This is reflected in the quietude of finished and other input items viz scrap and sponge iron. With pencil ingot being the sole brand bearer it’s frittering away is a forgone conclusion till the demand picks up. At the same time a rather unexpectedly low monsoon seems to have sown the seeds of an early revival in trading circles beset with speculation.
The government tightening its belt on the economic growth trying to give it a facelift with renewed resolve in attaining 9% growth in FY’11-12 under the shadow of runaway inflation and depleting industrial production. The government having unequivocally reiterated its resolve to accelerate infrastructure and road construction projects the market danced to the tunes of melodious intonations.
The movement in pencil ingot prices has developed a direct correlation with the swinging fortunes in the share market.
Change is on July 21st as compared to 19th July 2011
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(Sourced from www.steelprices-india.com)