Friday, 17 June,
The problem season for ingot manufacturers have just begun and the sings are ominous for the industry. In the beginning of the season the prices have corrected in the range of Rs 800-1500/mt. While at the same time Steel long was traded in the range of Rs 30900-31150/mt
In the morning trade manufacturers tried to push prices and were offering ingot at Rs 31500/mt at Mandi Gobindgarh, but could not find any takers at that rate and had to reduce the prices to Rs 31300/mt.
Most disturbing news again came from Hyderabad as manufacturers reduced ingot prices further by Rs 500/mt and are now offering the product at Rs 27700/mt. The price cut was seen across all the products. Sponge also was reportedly been sold at Rs 19500/mt. More than the price drop the manufacturers are worried about the volumes. Despite the price cuts they are not able to attract buying interest form rolling mills. As a result the prices keep drifting lower.
Now that Hyderabad market has corrected the trickle down effect will be seen in the other regions shortly. We can expect the prices of ingot in the near by markets to follow the trend and fall by the evening or in the early morning trade tomorrow. The price action in Hyderabad is likely to impact Raipur, Jalna, Mumbai, Chennai and Hosur.
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