Steel demand has been sluggish from last few months. Steel manufacturers are facing one of the toughest time. Higher raw material cost and low demand has squeezed steel makers margin.
Most of the steel plants have reduced their capacity utilization due to price disparity in raw material and finished goods and liquidity crunch.
“Raw material prices have been high in the Indian market from a long time and are expected to stay high in the near term. Production level of secondary players have reduced drastically in the 3rd quarter, ” said a Re-bar manufacturer based in Mumbai.
There is no room of further correction in Re bar prices and if it happens then most of the steel players will be wiped out, he added.
With production levels very low, any slight rise in demand will raise the steel prices steeply, he further added.
Leave a Reply