Steel prices bottoming out?

NEW DELHI: Steel and stainless-steel prices are largely determined by supply and demand dynamics on a global scale. Additionally, factors such as the price of iron ore, coking coal, and other raw materials used in the production of steel can also impact the price of steel and stainless steel. Analysts claim that, despite this, steel prices have remained largely stable over the past three months. Bimlendra Jha, MD, Jindal Steel & Power shares the market trends with ET Now.

The input cost of raw materials didn't begin to increase significantly until close to the end of December. It should also be noted that the prices of steel raw materials such as coking coal and iron ore have risen. NMDC (National Mineral Development Corporation) has increased the price of iron ore. And all that is happening is that the steel makers are trying to pass on these increased costs to the consumers. Steel prices have not increased significantly on their own.

When it comes to margins, different steel companies have different stocking policies. We do not keep any long-term stocks with us. As JSP, we are not speculative. Due to the fact that we likely have one of the lowest inventories in the sector, price and cost reflect each other very quickly.

Source: ET Now
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