Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Politics / Steel prices likely to fall 3-5% by September : CMIE
BackBack

Steel prices likely to fall 3-5% by September : CMIE

Steel prices likely to fall 3-5% by September : CMIE

Premium

Mumbai: Economic thinktank Centre for Monitoring Indian Economy has said that with the expected dip in contract prices of iron ore and coal, steel prices are like to fall by 3-5% by September.

“We expect domestic steel prices to dip by around 3-5% across product categories in the next three months ended September 2009," CMIE said in its monthly review of the Indian economy.

The domestic prices of steel is already 7-8% higher than global prices which is indicative of the fact that the prices are yet to be bottomed out domestically, it said.

CMIE also views that the uptrend in international prices seen in June might not sustain due to overcapacity in the global steel industry and that the domestic steel prices move in tandem with international prices.

“While the prices will remain weak, the revival in steel demand will sustain in 2009-10, driven by healthy demand for long steel products used in construction and the expected pick-up in housing construction in the second half of the year," CMIE said.

Coupled with the commissioning of 4.8 million tonnes of fresh capacity, the revival of demand would accelerate country’s steel production growth to 6.5% from an estimated one per cent rise in 2008-09.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Politics News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 26 Jul 2009, 10:30 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App