After the sharp hike in week opening, on Wednesday, 24th May trade log in the major hubs like Central Region; Raipur and Eastern Region; Durgapur offers gauged marginal correction around INR 200/MT (USD 3). While, other regions like Western; Mumbai and Northern; Delhi sustained their offers.
As per the analysis, the market might not sustain for the longer duration and may report slight fall in prices.
A stockiest in Central region, Raipur stated “Inventories levels are sufficient and demand is not much supported. There are anticipation about to price cut by large producers, if it happen medium scale plant will further low prices’’ he added.
Western India based a hot rolling mill owner mentioned, the buyers are not accepting quoted offers resulting bearish trades and decline in prices. There are bulk scrap shipments lined up in first week of June, which will directly affect semis market; indicating further fall in prices.
Expected Price cut by the large steel makers
As per various discussions with large steel makers; they are planning to cut the prices for coming month as demand is declining and these current high range offers are not attracting the buyers. In addition, the price gap between the medium and large producers; pressurizing large steel makers to lessen their offers.
Sources: SteelMint Research
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