Ludhiana Traders & Users Lament Severe Drop in Steel Demand
Steel Demand Alopan News

Ludhiana Traders & Users Lament Severe Drop in Steel Demand

Times of India reported that whiel despite correction in steel prices, Ludhiana based micro, small and medium enterprises are purchasing

Times of India reported that whiel despite correction in steel prices, Ludhiana based micro, small and medium enterprises are purchasing only limited quantities as they are anticipating further fall, steel traders are unable to sell their stocks due to huge drop in demand. Ludhiana Beopar Mandal President Mr Maninder Pal Guliani told ToI "In the last two months, there has been no buyer in the market for steel due to low demand in the domestic sector. On the other hand, steel companies are not correcting the prices, though there has been a small drop. Present market rate of HR coil is INR 62,000 per tonne, which means there is a correction of around INR 7,000 per tonne in two months, but still the demand is low as the buyer is expecting more correction. The price correction in long products is around INR 8,000 per tonne, but that too has failed to bring an upward movement in demand.”

Another steel trader Mr Sachin Singla told ToI “Business has been badly impacted due to the sluggish demand. The biggest concern right now is the huge quantity of unsold stocks piling at our stores. There is no hope of any change in this situation and it is likely that we will suffer record losses.”

Echoing the sentiments of traders, Fasteners’ Suppliers Association Ludhiana President Mr Rajkumar Singla added “As of now we are buying steel raw material in very limited quantities as there is no demand of end products, like fasteners, cycle parts, auto parts, sewing machine parts, among others, due to lockdowns. Moreover, the rates of raw material are on a lifetime high and have witnessed an increase of almost 100% in some cases. The prices must come down to the earlier level.”

Related Stories

No stories found.
SteelGuru Business News
www.steelguru.com