MUMBAI (Commodity Online): India's steel manufacturers are worried over the falling global price of steel and easing Indian currency against the dollar.
Presently, the domestic steel demand has declined and the global steel price has fallen Rs 2500 per ton which is likely to force the domestic manufacturers to sell the commodity at lower cost and even at loss to clear the godowns for new stock.
Last year, even though the domestic demand crunch exists but the falling rupee had helped the Indian companies to maintain the price.
Now with the easing rupee against the dollar, India will witness large number of steel imports affecting the domestic industries.
The domestic buyers, last year, were buying from domestic manufacturers due to costly imports while now, with global prices falling and rupee easing at 49 made the imports less costly.
Meanwhile, the raw material cost is likely to move up on shortage of supply from Karnataka is also likely to put Indian steel companies under pressure.
