Steel prices have been highly volatile in last few days. Thanks to unavailability of iron ore, new pricing policy by Coal India and weak rupee that had made imports of coal and scrap expensive.
But situation looks different at the moment, slowing down demand, rupee bouncing back smartly and slightly better availability of Iron ore from Orissa, Chattisgarh and Karnataka. There are many factors which makes steel prices unsustainable say experts.
Falling scrap prices and strong Rupee:
Something Indian scrap importers have to cheer about, strong rupee, over that falling scrap prices in International market ( Turkish steel mills stay out of the market and China being on holiday).
This will certainly increase supply of imported scrap in Indian market, which will certainly give some relief to Indian steel mills.
Revising New Coal Pricing Policy say Union Coal Minister
Union coal minister said that new coal pricing policy will be rolled back as it is not suitable at this moment. This will make coal cheaper.
Market anticipates NMDC to cut its ore prices by 10%
Market players anticipate NMDC to cut its ore prices by 10 % for 4th quarter , which is again a sign of slow down in Indian steel market.
(Author is a renowned Ex-Marketing Director of Primary steel producer)
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