Friday, February 11,
SteelMint Exclusive
Demand in the physical markets was hampered after RBI revised its policy in December.* It took the prices to a 2-month low of 26,600, the point at which the Bull Run in the steel market started. Now 26,600 is acting as a critical support level which was held out in yesterday’s trade and also today prices took a support again at 26,610. We can also see Open interest for February & March contracts going down significantly in the last two days which means that the pain is out of the system and till 26600 hold, chances are good for the market to rebound from these levels.
It seems that market is trying to make a bottom at this level before it starts picking up again and it is quite evident as manufacturers say, “the prices of raw material have gone up we have no option but to pass on the cost before it starts to hurt us financially”
Physical markets were range bound and Ingot at Mandi Govindgarh traded between Rs 28900- 29100/MT where as Gaziabad stayed at Rs 28500 and Raipur at Rs 27100-200. Hyderabad ingot prices corrected upto RS 1000/MT over weak demand. Buyers remain confused and cautious as markets remained extremely volatile.
Demand for finished products remained moderate and very few deals were noticed in the market.
Liquidity remains a problem in the market, demand for Re-bars at Jalna, Hyderabad Raipur and Chennai were moderate.
International scrap prices showed some resistance as well, HMS 80:20 were offered at $450-460/MT CFR Nav Sheva Mumbai though few buyers were keen to bid for the cargo.
LME Billet prices were hovering at around $531/MT.
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