Thursday, November 11,
Indian steel market seems to be running on pure hopes for demand revival. Firstly hopes were high for better demand “post monsoons” and now it is for “post festivals”. But market still waits to witness that tangible demand which could bring back some strong positivity.
Prices are being pushed a bit by producers to infuse positivity in the market despite of poor demand. Whereas buyers prefer to wait and watch as they expect prices to go down.
The question which runs in everybody’s mind is “Just how soon are things going to be in place for steel makers?”
Some positive vibes are being felt from the international market-
- Rise in scrap prices is leading to a increase in International HRC prices
- Billet prices are also increasing with the rise in demand from Middle East most notably from Iran and Africa
- The rise in iron ore fines prices indicate for better demand for steel in China in spite of production cuts in few provinces
Positive signs in the international market might have an impact in domestic steel market as well.
Constructions, which accounts nearly half of the steel demand has been dull since July mainly due to adverse weather conditions, shortage of raw material and labour force.
But it could be said that the construction activities have been delayed not cancelled.
So, one can expect that the steel demand to bounce back once the construction activities pick up. But a good chance of a strong recovery is only seen in the 1st quarter of 2011. Till then market is said to exhibit its customary ups and downs.
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