It is reported that primary Indian steel producers like SAIL, Tata Steel, JSW Steel and Essar Steel which had previously increased product prices by about 1,000 a tonne on an average, will likely maintain the prices in February to gauge market outlook in the near term.
But any further hike in steel prices unlikely on factors like
1. Weak demand from auto sector.
2. Strong rupee will give scope for more imports from China and CIS.
3. Cheap imports of raw material like coal and scrap.
“The outlook for the local industry is not bleak as inflation seems to have peaked and customers are returning to the market,” said Jayant Acharya, commercial director at JSW Steel. “Demand has been good in December and so far, has been healthy in January also. We expect sales to pick up this quarter,” he said, adding that the situation for a price hike looks unlikely.
Prices of hot rolled coils, the base grade steel product, are currently at 35,000-36,000 a tonne.
A senior executive from Essar Steel said his company was likely to implement a marginal hike, about 500 a tonne.
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