PTI reported that Economic think tank Centre for Monitoring Indian Economy expected dip in contract prices of iron ore and coal, steel prices are like to fall by 3% to 5% by September.
CMIE in its monthly review of the Indian economy said “We expect domestic steel prices to dip by around 3% to 5% across product categories in the next 3 months ended September 2009.”
It said “The domestic prices of steel is already 7% to 8% higher than global prices which is indicative of the fact that the prices are yet to be bottomed out domestically.”
CMIE added that the uptrend in international prices seen in June might not sustain due to overcapacity in the global steel industry and that the domestic steel prices move in tandem with international prices.
It said “While the prices will remain weak, the revival in steel demand will sustain in 2009-10, driven by healthy demand for long steel products used in construction and the expected pick up in housing construction in the H2 of the year.”
(Sourced from Press http://www.steelguru.com/news/index/2009/07/27/MTAzOTA1/Steel_prices_in_India_likely_to_fall_up_to_5pct_by_September_-_CMIE.html)
Sunday, July 26, 2009
Steel prices in India likely to fall up to 5pct by September - CMIE
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