Indian domestic steel transaction prices recorded marginal increases in May. However, there is growing resistance amongst consumers regarding any additional advances in selling values.
Purchasing activity has been slow during the last few weeks. Inventories are being run down ahead of the monsoon season and no large orders have been placed. As such, mills are finding it increasingly difficult to implement steel price hikes. Moreover, lower raw material expenditure is likely to exert downward price pressure in the short term.
Demand from the construction and infrastructure segments has been weaker than anticipated. Furthermore, the national government is implementing measures to tighten liquidity and lending conditions. These factors could have are negative impact on steel consumption.
MEPS expect prices to be fairly stable in June and then fall, albeit modestly, over the summer period.
MEPS (international) ltd. is an
independent supplier of steel market information.
For more information please visit MEPS website.
MEPS (international) ltd. is an
independent supplier of steel market information.
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