India Ratings said in a steel industry report on Monday that strong export demand and rising international prices will enable Indian steel producers to increase overseas shipments, although high freight and transportation costs may cause concerns.
According to the report, due to the sharp drop in user demand in most industries due to epidemic prevention measures, soaring steel prices in the local market may eventually face headwinds.
According to the report, from a month-on-month perspective, the consumption of finished steel products in April this year fell by 23% to 6.78 million tons and continued to decline in the second quarter.
In mid-May, India’s domestic hot rolled coil prices rose 3% month-on-month and 78% year-on-year. According to India Ratings, the main reasons for the increase in steel prices are the large export orders, strong global demand, and high international prices of steel and iron ore.
However, the agency said that it is worth noting that the drop in Chinese steel futures prices last week may have a certain impact on Indian export orders and domestic prices in the country in the short term.
According to the report, taking into account the Chinese government’s efforts to curb steel prices and lower demand expectations, international prices may face resistance, but they will still be higher than the level before the epidemic.
(Wenhua Finance)
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