• Deccan Chronicle
  • Andhra Bhoomi
  • Asian Age
  • ePaper
  •  Auto Refresh
Home

ePaper
Last Updated:02:41 AM IST | Tuesday, Jan 31, 2023
  • Home
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
Menu
  • Home
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
Home > In Other News > Reduction in raw material prices to help steel players
In Other News
Reduction in raw material prices to help steel players
Ritwik Mukherjee
By  
  , Published : Oct 1, 2019, 1:01 am IST | Updated : Oct 1, 2019, 1:01 am IST

Meanwhile, domestic crude steel production declined 3.7 per cent month-on-month in August 2019.

On the global front, Chinese production levels improved over July-August 2019 on the back of fiscal stimulus providing a strong floor to steel prices.
On the global front, Chinese production levels improved over July-August 2019 on the back of fiscal stimulus providing a strong floor to steel prices.

Kolkata: Sluggish domestic demand from end-user segments, including automobile, consumer durable, FMCG, construction and real estate sectors, led to a slowdown in consumption growth. Therefore, a few mills reported shut-down ranging from one-week to a few weeks in August 2019. Slow demand has also led to an increase in the inventory of semis products.

The August edition of the India Ratings and Research report on the Indian steel sector said, “The reduction in the price of raw materials since July 2019 will provide a major respite to India steel players. In August 2019, Australian hard coking coal (HCC) prices fell 15 per cent YoY and were 23 per cent lower as compared to those in March 2019; while domestic iron ore prices (NMDC, Chhattisgarh, Fines, Fe 64 per cent) fell 7 per cent as compared to the previous month’s. Further, NMDC announced a cut in iron ore prices. Domestic steel prices have followed the declining global prices with hot rolled coil (HRC, Delhi 2.5 mm-8 mm) prices falling 19 per cent YoY in August 2019 and reducing 12 per cent from those in March 2019.”

Meanwhile, domestic crude steel production declined 3.7 per cent month-on-month in August 2019. “A substantial pick up in the consumer demand and government and private sector spending is the need of the hour to arrest the fall in demand,” the Ind-Ra report said.

It said the average domestic spreads over April-August 2019 were well below the average FY19 levels, signifying a likely fall in the margins of domestic players in 1HFY20. With raw materials playing catch-up, the spreads may improve in 2HFY20. Over April-August 2019, the average domestic spread for HRC was nearly Rs 3,500-Rs 4,000 lower than the average over FY19 while that of rebar was Rs 2,500-Rs 3,500 lower than the FY19 average.

On the global front, Chinese production levels improved over July-August 2019 on the back of fiscal stimulus providing a strong floor to steel prices. Chinese coking coal imports rose 18 per cent mom; while the import of iron ore (pellets, fines and lumps) increased 21 per cent mom in July 2019.

end-of
Tags: 
fmcg
Latest From In Other News
Kaleshwaram Irrigation Project. Picture credits : ANI

NGT says environmental clearance for Kaleshwaram violates law

Internet and Mobile Association of India too had sought clarification on the issue. (Photo: PTI)

DPIIT to soon issue clarification on 26 pc FDI in digital media sector

In financial year 2018-19 the proportion of gross non-performing assets (NPAs) to total loans decreased to 9.1 per cent compared to 11.2 per cent in 2017-18.

RBI sees corporate governance 'fault lines' at some lenders

Most Popular

Mukesh Ambani 9th richest on Forbes' real-time billionaires list
Top credit card myths harmful for your financial well-being
Microsoft CEO Satya Nadella tops Fortune's Businessperson of the Year 2019
Employment growth slowed down in last two years: report
GST structure: key challenges and its solutions

Editor's Picks

Income tax e-filers drop by over 6.6 lakh in FY19: Official data
Swiping on your smartphone reveals a lot about you to your social media company
  • Read Financial Chronicle as it appears in print.
  • Subscribe, and get it delivered in the inbox everyday.
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
  • Home
  • About Us
  • Contact Us
  • Terms of Service
  • Privacy Guidelines
  • Copyright © 2019 Financial Chronicle, All rights reserved
Developed & Maintained By Daksham