INDIAN STEEL PRICES RISE IN JANUARY, FURTHER INCREASES FORECAST

Steelmakers in India were able to implement hikes in January, according to a recent report by MEPS (International) Ltd. A slight uptick in market sentiment was witnessed. Foreign offers remained uncompetitive because of the depreciation of the rupee. However, distributors contend that the latest domestic selling figures were not supported by economic fundamentals.

Stock levels are low and some replenishment will be necessary in the short term. Quotations from Chinese exporters and international transaction values are forecast to rise, exerting upward pressure on domestic numbers. Moreover, mills’ margins are expected to continue to be squeezed because of high input expenditure. These factors will, almost certainly, result in producers tabling higher steel prices in the coming months.

Source: Developing Markets’ Steel Review and: Indian Steel Price Forecasts