Monday, June 13,
MS Ingot cools down at most of the major mandis’. As expected, Ingot manufactures in Hyderabad rolled back the price hikes seen last week and prices went down by Rs 500/MT as demand from end users remained weak.
The physical market generally portrays a mirror image of the futures market. But surprisingly, the trend has been reverse today and the June contract on NCDEX has shown an upward trend. So, the fall in spot prices and the rise in futures prices is again widening the price gap.
However, the July contract has been discounted at around Rs 300/MT compared to June contract which indicates that market looks weak in July and prices might correct further.
According to Ingot manufacturers based in Raipur, “The demand for finished goods is weak and we do not want to keep the production levels high as monsoons would further weaken the demand in the coming weeks. Prices in Hyderabad went down by Rs 500/MT which forced us to reduce prices in order to maintain a competitive level”
“Demand looks weak. Approaching monsoons is likely to slow down the construction activities. So, some buying might be seen this week before the advent of the monsoon”, said traders.
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