Thursday, November 25,
Steel prices might see some upward moment in December according to Industry experts. Reasons behind hike will also be supported by
1.Healthy demand from construction and automobile sector.
2.High raw material prices (Iron ore and coal).
3.Low inventories and low production across country.
4.Primary steel players might increase steel prices in December looking at positive demand.
5.Positive international market.
6. Dollar appreciation ,which makes import dearer for Chinese steel exports.
On the back of strong domestic demand and better international prices, steel makers in India are contemplating a price increase in December.
Hemant Nerurkar, managing director of Tata Steel, said, “In the spot market, I think as the month passes by, we may increase prices, as I can now see that there is good demand.” He said the domestic demand should continue to be strong and the market had the ability to absorb higher steel prices.
Jayant Acharya, director, commercial and marketing, JSW Steel, said, “There is a strong case for prices to go up and we will see how it pans out.”
Adding: “In November, we had cut prices by two per cent and December will see some upward correction in prices.”
Vinod Garg, director, commercial, Ispat Industries said, “The market is now better as compared to the previous months and therefore, there is a scope to have better prices.”
The company rolled back prices by three per cent in November and Garg indicated that would be the quantum of increase.
Jayant Acharya said, “There was a small dip in prices in October and November, but prices internationally are now moving up. The auto and consumer durable demand is looking good and the construction sector is also starting to buy steel post the monsoon lull.”
Nerurkar said, “Steel prices were very good in February, March, April and then June onwards, prices came down. Now, for the rest of the year, we should be OK.”
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