Markets might correct if Rupee stays strong for next few days

After showing a upward trend last week, MS Ingot prices corrected at both physical & futures market on Monday.

Market experts say that steel demand has fallen over 15% from auto and construction sector compared to last month. Moreover, many secondary steel plants have stopped production due to higher raw material cost.

“When Rupee was at 54 against a dollar, steel prices went up by Rs 2,000-3,000 (as imported scrap went up by rs 1,500-2,000/MT). Now when Rupee is at 50 per US $,scrap importers are taking fresh positions.

If rupee sticks at the same level for next few days, expect steel prices to correct by Rs 2,000-2,500.” said a steel manufacturer based in Ludhiana.

Ingot at Mandi Gobindgarh traded between Rs.
34,400-500/MT during the day. Whereas, Ghaziabad market witnessed trade at Rs.34,300/MT, i.e. same as the previous close.


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