Commodity Online NEW DELHI: Major Indian steel manufactures have decided to cut the metal prices further for arresting imports and boosting domestic demand, which is stagnant due to high prices.
As per the reports steel producers JSW, Ispat and Essar have decided to reduce spot prices by 5-6 percent per tonne from next month. This will be the fourth consecutive cut by the domestic steel industries since last few months.
The domestic steel prices that reached its ever time high at Rs 48000 per tonnes in the April this year, fell by 30 percent to Rs 36000 per tonne early this month.
Since demand continues to witness a downturn, global steel makers are planning another round of price cuts. Arcelor Mittal Africa, Africa’s largest steel company will reduce prices for the third consecutive month in December.
There’s scope for further price cut as the global prices are still Rs 5000-7000 per tonne below the domestic prices, said a steel analyst.
According to an industrial official, Indian market scenario for the steel demand and prices is not different from the global market, which is reeling under the global meltdown, would definitely impact the domestic industry.
