Domestic steel prices in India rallied today with the end of general elections – 2019. The key factor behind sharp surge in prices as shared by market participants are expected positive trends on assumption of better demand in coming days.
The finished steel producers have stated improved demand from the stockiest & end user segments. Hence prices of Rebars, Wire rod & Structural steel moved up by about INR 500/MT (USD 7) in recent deals.
Following the better movement in finished products, the sponge iron & billet manufacturers in major markets have increased offers in same proportion.
Today, billet offers increased by INR 300-400/MT in eastern India (Rourkela & Durgapur), INR 300/MT in central region (Raipur & Raigarh), INR 400-500/MT in western part (Mumbai & Gujarat), INR 300-500/MT in southern India (Chennai & Hyderabad) & INR 400-500/MT in northern region (Mandi Gobindgarh).
Participants are assuming trades to improve further as with the end of elections, payment cycle will be better which may result in improved material movement too.
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