Domestic steel prices are unlikely to decline further, says Steel Authority of India

KOLKATA: Steel Authority of India, the largest state-owned steel company, feels domestic steel prices, particularly those of flat products ---which are used in consumer durables and cars-- have bottomed out and there is unlikely to be a further decline for the time being.

“There are strong indications that the domestic prices have already bottomed out,” a statement issued by SAIL on Thursday said. Taking a cue from international market, the domestic steel prices, particularly for flat products, were under pressure for some time, SAIL said. However, recent trends in the Chinese market and other global markets indicate stability in prices. There is also an increasing trend in raw material prices, both for coal and iron ore.

The company attributed it to two reasons. “One there is substantial de-stocking in the market. Secondly, domestic demand is coming back to track with improvement in liquidity position,” the statement said, adding that “any further decline in prices does not seem feasible at this juncture.”