After showing a downward trend last week, steel prices noticed some strength with physical prices traded higher by Rs 100-200/MT. Whereas, steel long on NCDEX opened flat with February contract trading at Rs 32,830/MT.
Traders based at Mandi Govindgarh expect steel prices to trade high as elections are approaching in Punjab.
However, market experts say that steel demand has fallen over 15% from auto and construction sector compared to last month. Moreover, many secondary steel plants have stopped production due to higher raw material cost.
Also strong Rupee will be a threat for higher steel prices as it will make scrap imports cheaper.
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