Last Updated :
04 November 2009 at 17:00 IST
Tata Steel cuts steel price, glut in China
MUMBAI (Commodity Online): Tata Steel has cut the prices of flat steel products by 4 per cent.
According to a press note issued by the company, the price cut is effective from November 1.
Steel Authority of India and JSW Steel had also lowered flat steel product prices this week by 3%-5%.
Tata Steel’s subsidiary Corus is currently operating at around 80% of capacity.
Meanwhile, another blow to the steel industry is in the offing with China’s steel glut is expected to worsen this year.
China Iron & Steel Association warned that steel production in the world’s third largest economy would rebound 10 per cent to about 550 million tonnes in 2009. That’s roughly equivalent to China’s full steel producing capacity in 2007, before the crisis in the international banking system hit the global economy.
The oversupply problem will be worse if China’s steel output exceeds 550 million tonnes.
The worsening supply-demand imbalance spells bad news for the Australian and Indian miners that supply iron ore to China’s steel mills.
Iron ore prices have already fallen by one-fifth in the past three months, as Chinese steel production swamps demand created by Beijing’s $586 billion fiscal stimulus package.
CISA cautioned that profits at China’s steel producers will be hurt as rising stockpiles of the metal push down prices.
MCX MILD STEEL INGOTS BILLETS 01 January 2020
contract was trading at
Rs 0 . What's your view on it?
After reading this article, people also read:
