Steel makers may cut prices further

The crisis in the European markets and policy tightening in China.

Even though raw material prices are still high.

We might go for a production cut,” said Mumbai-based cold roller and galvanized player, Uttam Galva Steels.

Prices of hot-rolled coil (HRC), ruling at about Rs 32,000 a tonne, down by Rs 2,000 over the last month. With demand weakening, producers are trying to keep prices at the same level.

“Purchases are being deferred. The market is keeping a watch on prices,” said an HRC producer.

China’s Baosteel, regarded as a benchmark for the steel industry, has cut July prices by about 10 per cent. Chinese steelmakers are likely to cut production in the third quarter on weak demand and high costs.