Steel prices in India were under pressure on factors like poor demand, de-stocking, liquidity crunch, lack of new projects due to monsoon, high cement and other construction related items.Finished steel prices have corrected almost Rs 1,500/t in domestic market in last few months.
Traders anticipate a seasonal pick up in demand in the month of November as construction activities remain strong.While they also said, with many medium and small plants resumed operations recently (on falling iron ore prices and stable sponge iron prices), there is a risk of inventory pressure.
“Overall demand has improved from last few months, we see some upside movement in 4th quarter. Liquidity still remains a concern for the industry. Imports will not impact long steel market in India.” said an industry participant.
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