Steel prices in India have gained around Rs 2,000-3,000/MT in last few weeks on expensive iron ore and new pricing policy by Coal India (Which had made coal prices dearer by Rs 300-400/MT).
But as per the expert's opinion, the hike in Indian steel prices may not sustain in near term and a correction of Rs 1,500-2,000/MT is expected.
Following are the reasons why the hike in Indian Steel prices may not sustain:
1. Revision of Coal Prices by CIL
2. Better availability of Iron ore in Orissa and Karnataka
3. Cheaper imports of Scrap and Coal
4. Tight Liquidity
5. Weak demand from Construction and Auto sector
Leave a Reply