Steel Re-bar prices picked up at
few mandis' in spite demand being stagnant as input cost remains high. Finished
steel manufacturers are not willing to reduce their prices as Ingot prices are
high and its availability is also not surplus as production levels have been
low in past few months. Whereas, buyers are not willing to accept the rise in
prices and have held their purchases for the time being.
Demand for finished steel at
present is low as many projects are delayed due to pending regulatory
clearances in various states. Also, increased focus of government agencies in
enforcing mining and transportation regulations to curb illegal mining has led
to decline in production of iron ore and disrupted supply, resulting in
shortage of the raw material for steel production.
However, if the land acquisition
bill and mining bill are passed, then the country's steel industry would have a
stable year next fiscal, as after that many pending projects of various steel
companies will be cleared. There will be capacity expansions of several steel
makers with the greenfield projects coming up, said industry body, Institute
for Steel Development and Growth (INSDAG).
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