November 22, 2008

Mild steel ingot futures weaken due to Govt measures

PTI reported that futures prices of mild steel ingots has declined on account of government measures to contain rising inflation and slowdown in construction works with arrival of monsoon.

June 2008 contract of mild steel ingots were down by 0.73% at INR 32,450 per quintal, July 2008 contract was lower by 1.07% at INR 33,190 per quintal and August 2008 contract slipped by 0.97% at INR 33,580 per quintal.

According to Mr Somnath Dey in charge of Religare Commodities Metals & Energy Research, steel prices weakened due to lean season in construction related works on arrival of monsoon and will hover around INR 32,000 to INR 33,000 per quintal level.

Mr Maniyar of Karvy also attributed fall in the iron ore export by 8% to 11% for the decline of futures prices of steel. He noted that international prices are firm but the domestic factors are weighing down on the steel futures price.