The Hindu : Business : Firm trend in steel prices seen

Online edition of India's National Newspaper
Friday, Nov 18, 2005

Business

Business

Firm trend in steel prices seen

R. Sampath

Boom in international demand for steel likely

VISAKHAPATNAM: Market expectations of a steep fall in steel prices are unlikely to materialise, in view of the firming up of prices all over the globe, according to Visakhapatnam Steel Plant (VSP) Chairman and Managing Director, Y. Siva Sagar Rao.

Stating that the coming months would witness a boom in the international demand for steel, he told The Hindu on Thursday that in the U.S. itself "steel is in high demand now, thanks to new infrastructure developments taking place there." The prevailing price of structural steel in the U.S. was $600 per tonne against the June-September range of $535-540. Similarly, there was a price jack-up in respect of long products such as wire rods, he said. Mr. Siva Sagar Rao said there were also indications that steel prices in Europe and South Korea were hardening. China, which was importing steel in a big way to make preparations for the 2008 Olympics, was likely to continue the imports because of its plans to host the International Industrial Expo-2010 in Shanghai.

As far as India was concerned, the VSP chief noted that steel consumption by the manufacturing sector was slated to go up in the near future.

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