Coronavirus outbreak may rein in India's steel price rally

• Thursday, March 19, 2020
• Source:ferro-alloys.com

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[Ferro-Alloys.com] The global Coronavirus outbreak is likely to rein in the rally in Indian domestic steel prices, in step with global steel prices which have sharply declined from January highs. 

 

Although domestic prices have been trading at around 7% discount to landed price of imports, with Chinese mills resuming production, the pricing power of domestic steel majors may be restrained going forward, analysts have said. The rising number of global cases of Coronavirus may curb steel exports from India, CARE Ratings said in its latest report. 

 

Domestic steel prices started to inch upwards from mid-November in line with the international prices. Over the next three months, prices rose by 9% due to lower inventory levels, restocking demand and expectation of revival in economic growth on government measures. 

 

However, the spread of Coronavirus worldwide has led to some pull back in prices. International steel prices started to decline from mid-January onwards. 

 

India’s finished steel production grew by just 2.2% to 94 million tonne during April-February FY20 due to lower demand mainly from automobiles and consumer goods segment. Import of finished steel fell by 10.4% during April-February 2020 compared to last year.  （The Economic Times）

 

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