India:"Steellong volumes high on NCDEX ;downside limited"- Traders

 Saturday, December 21,

SteelMint Exclusive

Steel long on NCDEX noticed a record volume of 40,000 Lots  for Jan contract on 20th Dec 2010. Markets opened weak over expiry of Dec contract. Second half market reacted in positive direction and gained Rs 300-400/Mt in physical market.

Transport strike at Raipur remains a problem as movement was slow and not much of activity seen in the market. Markets are likely to get firm once situation becomes stable.

 Demand is likely to remain firm  according to some traders based in Bengal, Chhattisgarh and Mumbai.

“Very few transactions were noticed on Friday and Saturday after bank remain closed on Friday and worked half day on Saturday. Prices remained firm all over India in spite of not much of activity happening in the market. Prices are likely to remain stable.

According to a manufacturer based in Raipur, Chhattisgarh, “It has been noticed in last few days that the volume of trade has improved in the market and we need a week’s time to execute our trade. Steel Re bar (TMT) has good support at the price level of Rs 28,200/MT and Steel ingot also has good support at Rs 25,000/MT. We do not see a down side from the current levels”

Manufacturers based in Durgapur and Bengal also have the same opinion and say that good volume of trade has been seen at the price level of Rs 27,600/MT, Market does not seem to go down from the current level. “Demand for finished steel has been good in last few days and we do not expect markets to go down unexpectedly.” said an integrated manufacturer based in Durgapur.

Reported by: Azra Shaheen (azra@steelmint.com)