Falling steel prices a short-term blip: Firms
Business Standard|November 27, 2021
After an increase in the beginning of the month, steel prices in the trade segment have weakened on the back of a correction in international steel prices and key input materials. But companies believe it's more a short term blip and sentiments will pick up going forward.
ISHITA AYAN DUTT

According to data from SteelMint, prices of rebar (long steel) in the trade segment was at ₹62,000 a tonne on November 5 and fell to ₹60,300 a tonne on November 19. Hot-rolled coil (HRC) in flat steel was more stable; it was at ₹71,600 a tonne on November 3 and stood at ₹71,000 a tonne on November 17.

Secondary producers - who account for about two-thirds of long steel production and use the electric arc furnace (EAF) and induction furnace (IF)route-have slashed prices. IF-grade prices ex-Mumbai was at ₹52,800 a tonne beginning November and stood at ₹48,900 a tonne on November 25.

Sentiments in China are weak and the pick-up in domestic demand is not to the extent expected, said a secondary producer.

Flat steel is typically used in automobiles and domestic appliances and long steel primarily for construction and railways.

Pricing factors

The softening of prices is led by a combination of factors. “Rebar prices have softened, said Jindal Steel & Power (JSPL) Managing Director VR Sharma. “There is hardly any demand in the export market because of the Evergrande crisis and lower exports have increased availability in the domestic market.

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