Rebar prices have hit two years’ low; billet prices dropped by $7-$12/MT
The Indian steel market continues to be weak due to lack of demand and this is affecting the sentiments of ship recyclers, says a report by Dubai-based Wirana Shipping Corp.
Even though local steel plate prices have marginally improved by US$2/MT this week, imported scrap prices have reduced by US$5/MT.
Local steel market is weak and local rebar prices have hit a two year’s low, according to the report.
Billet prices in the local market have dropped by about US$7-$12/MT this week. There is a mixed opinion in the market on whether the local steel market has bottomed out as some Indian exporters are holding back billet exports waiting for price increase.
After holding firm for about 3 weeks, the local currency marginally softened against the US Dollar by about 0.30% this week. This can be attributed to an interest rate hike of 0.25% by the US Fed this week.
Increased prices of vegetables, cereals and pulses would push inflation meaning that RBI could continue to maintain its hawkish attitude at their next meeting on 10 August. Prices offered by ship recyclers have continued at about same levels though there are hardly any units that are being discussed this week.
“We would expect prices offered by Ship recyclers to be under pressure in view of the continuing weak local steel market and no clear indication of revival in demand over the next month,” said the report.
Next week will give more clarity on prevailing mixed opinion in the market on whether the steel prices have bottomed out, said the report dated 31 July 2023. Fiinews.com
