Steel prices crash as export duty weigh heavy, demand dries-up
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Update time : 2022-06-01 21:43:50
Steel prices have crashed to ₹64,000-65,000 a tonne from ₹71,000 last month on expectation of a supply glut on levy of 15 per cent export duty. Prices were hovering at ₹76,000 a tonne in April. Interestingly, the excess supply comes amid forecast of weak demand with onset of south-west monsoon slowing down infrastructure activities from this month.
Moreover, most of the stockists are refusing to build inventory on expectations that prices will fall further in coming days. Markets expect steel prices to touch ₹60,000 a tonne next month and drop to ₹55,000 in August but may not touch ₹ 40,000-45,000-level seen during the peak Covid pandemic times.
Kamlesh Bagmar, Deputy Head of Research, Prabhudas Lilladher, said the condition in the steel market is totally chaotic and demand has come to standstill due to undercutting by dealers in expectation of steep price reduction by steel companies. Steel prices had fallen by ₹5,000 a tonne since imposition of export duty and HRC (hot-rolled coil) steel prices are currently hovering at ₹65,000 a tonne.
