The monsoon season in
India has started a week earlier than expected in the South and other regions expect it to arrive earlier than usual as well. This situation obviously has a depressive impact on the long product prices in the region, already trimming the prices down to a certain extent.
We cannot say that the demand is not good in
India; however, the monsoon fact is an obstacle in front of a price rise. With the aim of saving from duty and tax payments, rerolling mills tend to report lower
production figures than actual and this misleading information also results in an oversupply situation in the market. Under such circumstances, prices have no chance other than remaining flat if not to drop, despite the tendency on the contrary in the international market.
Hence we currently observe counter bids coming from buyers in
India very much lower than offers made by suppliers in
Ukraine. Some industry insiders even mention an expected price drop in the local market by Indian producers.