Indian steel prices which have shot up to Rs 1,500-2,000/t in a very short span is unlikely to hold, reported steel traders to SteelMint.
Prices rose on factors like
1. Power cut in Hyderabad, Chennai (Where prices went up almost Rs 2,000/t)
2. Scarcity of scrap in UP market (on account of Lok Sabha Elections, where prices went up to Rs 1,500-2,000/t)
3. Strong demand from UP steel mills support steel prices in Central India. (Where prices went up by Rs 1,200-1,500/t)
Now market traders feel steel prices are a its peak most likely to fall in short term after UP election gets over.
” Prices will not sustain at these levels as supply of scrap will improve after elections. It is also reported that imported scrap which was booked at $430-440 levels has started reaching to UP market.” said a steel trader based in Gaziabad.
Prices might correct upto Rs 1,000-1,500/t in near term, he further added.
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