“Indian steel futures might go high to cover disparity with physical market”-Experts

MS ingot prices at major mandis' moved up in the range of Rs 100-500/MT apart from Ludhiana where prices went down by Rs 100/MT.

MS ingot at Mandi Gobindgarh was being quoted at Rs 31,900-32,000/MT during the day i.e. up by Rs 100/MT from previous trade. In Alang, MS ingot wad traded at Rs 30,900/MT i.e. hike by Rs 500/MT from the last trade due to the shortage of Scrap. Whereas, Ingot prices at Raipur remained traded at the same Rs 30,400/MT.

October'11 future contract on NCDEX remained highly volatile and prices opened at Rs 29,880/MT, touched a low at Rs 29,740/MT during the day.

Currently, markets are in backwardation for October'11 future contract, difference between spot & future at Ghaziabad is trading around by Rs 2,870/MT, which is a worry for market.

Comment by

Trader, Mandi Gobindgarh: “Induction furnaces keeping their production closed for certain days for pickup in demand as everybody seems to be in cautious mode and are waiting for a direction.”

High disparity between physical and future markets might take steel long at NCDEX high, he added.


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