Friday, June 10,
Steel futures at NCDEX show signs of consolidation after reaching the peak on Wednesday as buyers have adopted a cautious stance. The most active June contract opened today at around Rs 31,390/MT i.e. down by Rs 50/MT from the previous close.
Steel prices in the physical market seem to remain steady. MS Ingot at Mandi Gobindgarh is being offered at around Rs 32,000- 32,100/MT i.e. almost same as the levels seen yesterday.
Reports have shown that the Indian steel production fell towards 5.7 million tons during the month of April, down by 6.4 percent as compared to the previous month. This fall in production levels can be a lead indicator to the future outlook of the industry. April saw demand tapering off due to lack of demand from the infrastructure and construction sector. And with government busy with tackling issues of corruption the issue is not likely to get resolved soon.
According to market players, “market is largely expected to remain range bound for the rest of the week, with firm support at Rs 30,000/MT at NCDEX most active June futures. No major movement is expected in the physical market as prices are already high and buying interest is low. Only a little bit of buying can be expected before the advent of monsoon from the construction sector but that may not impact the prices as there is enough inventory to cater to that section. Manufacturers are also not showing any keen interest in lifting their production level as demand from end users continue to be low”
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