Friday, October 29,
SteelMint Exclusive
Steel futures gain some momentum since morning but buyers still cautious, demand remains weak in the physical market. Mixed reaction seen in the market, few believe that markets have bottomed out and further reduction in steel prices is unlikely to happen.
“I think prices have bottomed out, though demand is weak, but steel prices below these levels are unjustified looking at high input costs like iron ore, coal and scrap.” said an Induction manufacturer based in Raigarh.
Whereas few feel that demand remains weak across country and looking at Chinese markets, they are not encouraging as well. Many secondary steel makers feel that November will be month to watch for, some of them are expecting price cut by iron ore miners and some are expecting price cut by major steel players in India.
“Steel prices are volatile, but matter of fact is demand is weak. Steel prices are only supported by good demand. We are expecting a price cut by Iron ore mines based in Orissa, as they are too high and not complementing sponge iron ore prices. More over we are also expecting a price cut by major steel makers in India on account of poor demand and piling up of stock” said a steel manufacturer based in Maharashtra.
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