Decline
in value of Rupee in the foreign exchange market since August has already
hit steel mill's import bills. It is also expected to dent their profit margins
further as most of materials booked over the last couple of weeks are yet
to be delivered.
Imported
ferrous scrap prices have also strengthened globally over the last couple of
weeks by USD 20-30/MT. Offers especially from European countries
have gone up ahead of the year ending deals made to Turkey.
Scrap
importers are still not ready book fresh orders as declining rupee pushing up
the cost of the material. Sluggish demand will also hurt those importers who
have booked the material at high prices delivered next month.
The price escalation will impact on the semi
finished products in the coming weeks when the new bookings at higher prices
start arriving. Hence long product prices are likely to move up on cost push
pressures in January. This will pressurize the domestic mills and re rollers to
raise prices for long products in January.
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