Indian steel futures corrected for 3rd consecutive day. Market participants expect prices have bottomed out and should revive after expiry steel-long April contract on NCDEX.
“Prices are at its lowest, we except ingot and re-bar prices at Hyderabad might gain Rs 500-1,000/t from these levels.” said a steel manufacturer based in Hyderabad.
Currently Hyderabad prices for Ingot are hovering around Rs 33,000/t, Re-bar at Rs 38,000-200/t, Billet at Rs 33,400/t and Sponge at 21,000/t (All prices Basic), he further added.
Currenlty, Mandi Gobindgarh is trading at Rs. 36,150-36,200/t(basic), Muzaffarnagar trading at Rs 40,200/t (excise including), Mumbai is being quoted at Rs 34,800/t (Basic), Raipur at Rs 32400-500/t (Basic).
Ghaziabad is trading around Rs 36400/t with limited supply of the material due to power and labor issues. “Prices in Ghaziabad may have had weakened more but lower supply of the material has supported prices”, said a city-based trader.
Power issues in Tamil Nadu are at its peak with furnaces getting not more than 50% power supply in a month. However, with expectations of new power capacities to come up over the next few quarters, power problems should reduce.
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