15 Dec, Wed
SteelMint Exclusive
Indian steel prices have gained Rs 1000-1500/Mt in last few days after steel majors like JSW, TATA and SAIL have indicated price hike in Jan 2011. Secondary steel prices reacted to the news and gained on speculation.
Mixed Reaction
We see a mixed reaction of this price hike, few people think it is just speculative and they remain cautious over high prices. According to trader based in Mumbai “Prices have gone up on mere speculation that major steel players will raise their Jan prices but there is still no firm demand from the market. Buying is majorly happening through traders and stockists not from the end consumer.”
On the other hand manufacturers based in Chattisgarh feel that demand is firm and prices might go up further.” We have booked a good quantity in last few days. Its long time that steel markets are sluggish and revival is seen. Certainly international steel prices have gone up sharply, it is likely that Indian steel prices will follow the same trend.”
Experts feel that this price hike by Steel majors are primarily done on flat products like HR Coil and CR Coil, where as long products prices are marginally increased. We have seen a recent rise in automobile prices in India. HR coil and CR coil is used to make automobiles, where as real estate sector in India is going through a rough patch after LIC housing scam. Banks are strict in lending to real estate and we do not see much of demand from real estate sector said an analysts based in Mumbai.
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