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| Monday Market Monitor (WEEK 27) - Eruption suspended - 07 Jul, 2008 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Despite the fact that Indian steel majors Steel Authority of India Limited, TATA Steel and few others, who decide the Indian domestic steel price line, are marinating their price line for 3 months as promised to the Indian government in the second week of May 2008, raw material cost prices, global levels and speculation of impending increase had put Indian domestic steel market on fire in WEEK 25 and WEEK 26. Domestic prices for input materials, long products as well as flat products have all witnessed big jumps in all the regions during this period. Price movement for Mumbai market during WEEK 25 and WEEK 26 is given below to outline that the increase is spread across all product categories
Price in INR per tonne Inclusive of ED and VAT Delivery – FOT Market sources attributed speculations of impending listed price increase by steel majors on July 1st 2008 as main reason for such unprecedented rise, in addition to surging input material costs and high global price levels. Indian government, which is under immense pressure with inflation crossing 11% mark, , took note of this eruption and called all major and primary steel producers of India on July 3rd 2008 to discuss and outline strategy for containing market prices. Mr RS Pandey secretary to the ministry of steel impressed upon the producers that despite an assurance given by them at a meeting with the Prime Minister to hold the price line for three months, prices have gone up at the retail level. He strongly emphasized upon the need to hold the price of steel items at a time when the government is fighting inflationary pressure. Indian steel majors supported the directive of government dispelling the speculation of increase of prices in July 2008, thus cooling the market immediately. As a result, upward movement of steel prices across all categories by and large stopped in general and some products at certain locations witnessed corrections. The market sentiment took a nose dive and it was to some extant helped by reporting of 10% price reduction in steel, although it was announced only by tube makers. Price movement for Mumbai market during WEEK 27 is given below
Price in INR per tonne Inclusive of ED and VAT Delivery – FOT Note for GP – There is short supply situation for thicker gauges in Mumbai market due to shut down of a line of major player for revamp Some of the major corrections witnessed in WEEK 27 across India are listed below
Price in INR per tonne Inclusive of ED and VAT Delivery – FOT This week is likely to see further corrections, as the buyers and stockiest are assured of no increase by steel majors at least during July 2008. This sentiment may prompt them to limit buying putting pressures on secondary steel makers and stockiest in short term. Readers may note that the price levels indicated in this article represent the market fairly and are outlined to give trends only, but could be in variance with some transactions at different levels for smaller volumes etc. (Sourced from www.steelprices-india.com) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Export And Import Levels | ||
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