Market for MS Ingot remained at stalemate during the day with slight change in prices at the physical market. Steel futures at NCDEX however, showed a upward trend with the November contract trading closely between Rs 32,850- 32,920/MT.
Ingot at Mandi Gobindgarh traded at Rs. 32,500- 32,600/ MT during the day and Gaziabad market witnessed trade at
Rs.32,400/ MT, i.e. same as the previous trade price .
The spread between the November- December’11
contract ranges from Rs. (600)- (850)/MT and around 740 MT of OI is added to the contract bringing cumulative OI close to
79,400 MT.
Market at present seems to be highly unpredictable with Indian Rupee continuously depreciating against US Dollar and uncertainties associated with the supply of Iron ore. Indian Rupee has reached all time low at 1 USD = Rs 51.35 and this is likely to make imported scrap dearer at a situation where the Industry is facing acute shortage of the key raw material Iron ore. So, expensive raw material might limit the chances fof a sharp price correction for MS Ingot in the near term and more clarity can be achieved after the November contract settles on NCDEX today.
Leave a Reply