According to a recent article in The Economic Times India, Indian steel prices, which ascended along with the recent global trend, have dropped further than the normal seasonal effect from monsoon season.
According to the Chief Marketing Officer Ranjan Dhar of Essar Steel, ““The ability of Indian steel producers to export has greatly reduced due to the international trade wars, resulting in rising shipments into India. This has negatively impacted domestic steel prices.” Dhar advocates protection tariffs to minimize the influx of redirected material into the Indian market.
Long products are more severely affected by the monsoon season as construction halts, but according to the analysis, prices usually fall INR 1,000-1,500/mt ($15-22/mt) on ex-works Mumbai prices, yet prices on billet this year, for example, have declined 3 times more than the usual.
Data from the Joint Plant Committee on imports of non-flat products (bars, rods) shows that such imports have more than doubled in May, both since May last year and April this year, therefore, providing evidence of the influx in imports.
A metals analyst at Emkay Securities, Goutam Cahkraborty, also attributed the price decline to seasonality, inventory clearing, and the decline of raw material prices on iron ore and coking coal.