Weak economy drags steel, cement prices down

The weak economy and slowing infrastructure spending has taken a heavy toll on steel and cement prices. Steel prices have plunged below Rs 40,000-mark for the first time in two years due to the low demand from slowing auto and white goods sectors while cement prices have started cracking from June. The price of basic hot-rolled coil variety slipped to Rs 38,000 to Rs 39,000 a tonne due to sharp fall in demand in last few months. The auto sector, one of the major drivers of steel demand, had reported drop in sales for last 10 months as the crisis in the NBFC sector squeezed lending to this sector.