After touching its all time high, steel prices are now falling for the past few days. From its peak touched in March, the steel prices fell by about Rs 16,000 per tonne giving much needed relief to the buyers.
Soon after the Russian invasion on Ukraine, steel prices had jumped by Rs 4,000 to Rs 5,000 per tonne in the domestic market within a week on account of rise in prices of raw material and coal.
And in the following days, the prices posted an all time high of Rs 68,000 to Rs 69500 per tonne (excluding 18 GST).
On Thursday, the local or secondary producers’ prices of 8 mm TMT bars was quoted at Rs 53,500 per tonne (excluding 18 per cent GST) and 10 to 25 mm bars at Rs 52,500 per tonne (excluding GST).
Rajesh Sarda, Senior Vice President of Steel and Hardware Chamber told The Hitavada that the prices have bottomed out. “It seems that the prices may not further dip and the market is now witnessing marginal improvement in demand,” he said.
When the prices were flying high during the months of March and April, many buyers were on ‘wait and watch’ mode and demand for the commodity had started falling.
In due course of time, other factors also pushed back the steel prices. High price of cement and non-availability of labourers have negatively impacted the construction activities and eventually dropped the demand for steel products.
But now the market experts said that there is no possibility of dilution in prices of coal which will not let the steel prices drop further in coming days. It is important to note that Russia and Ukraine were major suppliers of finished steel products and raw materials like coking coal and iron ore in the international markets.
But after the war between the two countries broke out, the supply went haywire and prices surged abruptly.