Indian Steel Prices Steady in January

Despite slowing domestic demand, prices of steel in India will maintain status quo levels in January, a top industry producer said.

Steel prices will neither fall or increase in January, Seshagiri Rao, joint managing director and group CFO of JSW Steel, told www.business-standard.com.

Steel producers normally review and amend prices of the commodity on the first day of every month.

Rao said there is currently a month's interval between international and Indian steel prices. Though international prices range from $720 (Rs 38,000) a tonne to $600 (Rs 31,620) a tonne, domestic prices continue in the range of Rs 34,000 per tonne.

"We are not seeing prices coming down in the near future. They will more or less remain at the same levels as now," Ankit Miglani, deputy managing director, Uttam Galva Steel, said.

"The domestic demand is not robust at all, in fact, it is sloppy at the moment but the companies have been able to maintain prices because of the coking coal push. Fall in imports due to the rise in domestic production is also helping the companies in maintaining steel prices," an analyst told www.business-standard.com.

Overall steel production may reach 4 per cent higher over last year, Rao said, but is still far from the projected 8 per cent to 10 per cent growth.

Consumption of steel from April to November grew 3.9 per cent at 45 million tonnes, while total production in the same period rose 7.9 per cent.

"Steel production might increase in the coming months but demand pick-up will take longer to revive," Rao said.