July 20, 2008

Steel prices slide in Punjab – Report

PTI reported that steel price has moved down by INR 1,000 to INR 2,000 per tonne in Punjab on March 26th 2008, a day after the Indian steelmakers offered to stop export. The prices of ingot have come down to INR 38,500 per tonne from INR 39,800 per tonne within a day. Similarly, the rates of round have fallen down to INR 43,000 per tonne from INR 45,000 per tonne.

As per report, the rates are expected to fall down further by another INR 1,000 to INR 1,500 per tonne within a couple of days.

The report quoted a Mandi Gobindgarh based steel trader as saying that "The prices have softened because of the announcement by the Indian Steel Alliance that the steel producers would immediately stop steel export. In view of the present situation, the prices might further go down a little bit even more."

But the report added that the slight relief emerged in the shape of softening of steel prices could not accrue to steel consumers like light engineering industry of the state as induction furnaces have temporarily stopped booking orders from the industry due to reduction in prices.

Mr SC Ralhan regional chairman of Engineering Export Promotion Council said that "We are not getting any benefit out of reduction in steel prices as the induction furnaces are not booking orders at reduced prices even as the demand for steel is there."