Indian steel price hike to dull demand

GURGAON (Scrap Monster): Indian domestic steel prices recorded marginal increases in May. However, there is growing resistance amongst consumers regarding any additional advances in selling values. 

According to MEPS International, purchasing activity has been quite slow during the last few weeks. Inventories are being run down ahead of the monsoon season and no large orders have been placed. As such, mills are facing difficulties due to steel price hikes. Also, lower raw material expenditure is likely to exert downward price pressure in the short term.

The demand from the construction and infrastructure segments has been weaker due to price hike. The prices of steel are expected to be fairly stable in June and then fall, modestly, over the summer period.