[Ferro-Alloys.com] Domestic prices of steel, of which India is among the three top global producers, are expected to climb 10-12 per cent this year, with the government’s measures to revamp infrastructure and consumption likely reviving demand for the alloy from carmakers and construction companies.
In anticipation of a turnaround, steel shares have climbed 32-79 per cent from their October lows, in kilter with buoyant domestic and international prices of the commodity.
If we compare the peak steel prices in India last year vis-à-vis the current prices after three hikes, and compare it to landed cost of imports, there is a scope for further increase in price in the domestic market, says Seshagiri Rao, Joint MD & Group CFO, JSW Steel. Excerpts from an interview with ETNOW.
“It is a result of global as well local factors. For steel industry to be understood, one has to see what is happening globally because it is a globally traded commodity. Almost one-third of the steel is traded globally.”