SteelMint took a survey on reasons for low demand of finished steel in Indian market. We found that apart from seasonal slow down, other factor which has weighed on demand are high prices for cement and other construction materials.
Retailers across India report that demand was subdued as cement prices were high (which was at Rs 270-280 per 50kg bag), gradually prices are coming down to Rs 240-250 per bag, which will give some push to new infra projects.
” On high cement and stone prices, many contractors have delayed their projects.Since cement prices have started coming down, projects will certainly start regaining momentum.” said a retailer based in Maharastra.
We expect demand to improve sometime in month of September, he further added.
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