JSW Steel Expects Steel Prices to Rise in February

SEATTLE (Scrap Monster): The steel prices are expected to stabilize, as steel consumption in India has started to rise on a monthly basis.

According to Sehagiri Rao, Joint Managing Director, JSW Steel, the steel prices have corrected across the globe, especially in China. He expects prices not to witness similar decline in India. The prices are unlikely to come down to previous lows recorded in 2019-’20, he added.

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The hot-rolled coil steel prices had touched record high levels of INR 70,875 in November 2021. However, cost pressure and destocking by the trade market, resulted in decline in prices to around INR 67,000 per tonne in January this year.

JSW Steel Chief noted that the steel consumption levels in 2021 have not been as strong as they were in 2020. However, the consumption levels witnessed strong momentum towards the end of the previous year. The December 2021 steel consumption levels, at 9.29 million tonnes, hit the highest level since April 2021.

Rao expects steel prices to go up in the forthcoming months. The prices may see notable hike in the month of February. The global steel prices have started moving up. The domestic steel prices in India may see hike during the current quarter. The country is currently witnessing strong steel demand, he added.