As Demand Picks Up Steel Companies Hike Prices
In a sign of economic activity gradually picking pace in the unlock phase, steel companies have increased the price of the metal for the fourth month in a row in October on the back of demand revival and firm price trends in the overseas market. The price rise in October is contrary to expectations of a decline in prices in China, where flat steel prices have dropped by four per cent in September 2020. The price has increased for long steel products used in real estate projects, but the price rise there is moderate compared to the hot rolled coils (HRC) prices and long products are still priced about Rs 1,500 per tonne lower than flat products. With the price rise in October, HRC prices are now higher than pre covid price line of Rs 42,000 per tonne. The improved demand outlook is driven by a strong recovery in automotive, consumer durables and other white goods. While domestic conditions have pushed up steel prices in the country, pressure points remain by way of falling steel prices in the biggest producing and consuming nation China. There steel prices have declined by $ 25/tonne in both domestic and export markets during September 2020.
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