Tuesday, June 14,
Ingot prices across the country continue to slide downwards. Prices in Mandi Gobindgarh were quoted at Rs 31,500/MT in the afternoon trade i.e. down from the highs of Rs 32,200/MT last week. Raipur also had the same story to project and prices came off to Rs 29,000/MT.
The weakness can be attributed to the fast approaching monsoon. This is causing the demand from the rolling mills to fall continuously. The trend is clearly visible on NCDEX where the far month contracts are trading at a discount to the current month and the prices are likely to correct after the expiry of the current series.
According to the technical analysts, “the bull run has just begun for the Steel long contract. The market is expected to hold strength as long as it holds up the level of Rs 30,600/MT. Prices may move further by Rs 500/MT before any correction”
The fundamentals of the market say that the prices should correct due to the seasonal factors. But the technical analysts believed the market to continue to head higher. The disconnection between the fundamental and technical analysis is making it hard for the market players to position themselves for the coming months and they wait eagerly for the expiry of the June contract on NCDEX.
Price correction looks evident in the near term, if we take the exchange charts out of the equation, said traders
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