International trend lifts domestic Steel demand in India
MUMBAI (Scrap Register): Despite a average Steel demand growth of 4.4 percent in India during the initial four months of the current fiscal, on the back of international trend the domestic steel prices was seen to have a smart rebound.
Since June 2017, the international prices was seen to have a significant recovery due to the Chinese governments supply side reforms to reduce domestic steel overcapacity, a steadily declining trend in Chinese steel exports.
“Apart from structural factors like closure of excess capacity, we believe that up-fronting of production and purchases ahead of a planned winter shutdown in China is also a factor leading to the buoyancy in steel production and prices witnessed since June 2017,” Jayanta Roy, Senior Vice- President and Group Head - Corporate Sector Ratings.
Domestic HRC prices between July and August of 2018 fiscal have increased by about 10 percent, which reached Rs 39250 per tons n the fourth week of August from Rs 35750 per ton in the first week of July.