Thrusday, 14th April
Markets opened at yesterday’s levels and throughout the day traded without any price action.* With the advent of summer, the market for finished steel products is seen to be suffering with multiple factors such
- Inadequate demand,
- Input cost pressures,
- Inadequate labor,
- liquidity crunch,
- Seasonal changes, etc.
Manufactures have to face the brunt of various factors. For them, input costs are going up, and the low demand is not allowing them to pass on these costs. This is also the sowing season which is impacting the construction and infrastructure activity effectively leading to lower demand for steel products.
Heavy section manufacturers from the Raipur region are still operating at lower capacities as demand from the Maharashtra region is not coming through. Manufacturers feel that there is hardly any room for prices to correct as cost of production is up and liquidity is still a major issue at hand already.
Comment by
Trader: “We are not stocking up; we see a mild correction from these levels. We don’t see any demand pick up till the labor returns back to the sites and contractors actually start placing orders”
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