On a telephonic interview with
SteelMint, Mr K. K. Garg, President of All India Induction Furnaces
Association, shared his outlook on steel sector.
1.Where do you see steel prices heading
in near term?
Currently, prices are stable on
account of weak demand and selling pressure built up on manufacturers. Even a
slight increase in demand will account in rise of prices gradually.
2.Past one month, Dollar has been
rising. Will it show some change this month?
Rising Dollar will continue to hit at
these levels. Dollar will not show any fall this month.
3.Steel Futures is at its low of
650 points. How will NCDEX effect markets?
NCDEX is a part of trading market,
the real fact being that material is not available in physical market and its
scarcity is continuing.
4.Scrap imports have lessened. How will
this hurt the Indian market?
Indian market will be in a crisis due
to unavailability of Scrap. Unavailability of the material is anticipated to
continue this month.
On the above
view, what is your analysis regarding Sponge Iron?
5.Sponge Iron demand
will go up due to shortage of scrap. Sponge Iron price will be hiked by around
Rs 1,000/MT in around 15-20 days.
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