InvestorQ : What has been the extent of fall in steel prices in Indian markets?
indhumathi Sayani made post

What has been the extent of fall in steel prices in Indian markets?

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1 month ago
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Steel prices have fallen and they have fallen hard in the last few months since peaking in April this year. The sharp fall has been triggered by factors like a slowdown in China to delayed infrastructure projects and fears of a general recession. The price of Hot Rolled Coils (HRC) has fallen from Rs93,000 per tonne to Rs57,000 per tonne, which is a massive fall of 40% in just about 5 months. In addition, government tax on steel exports was a big reason for the subdued demand globally leaving a glut of steel in domestic market.

To worsen matters, steel export orders are getting cancelled and there is huge inventory pile-up. Any hike in price is totally ruled out. due to huge inventories. The idea of banning exports was to make more steel available domestically. However, with recession fears globally, that has backfired.

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