Steel prices appear to have reached their bottom and are likely to go up from their current levels if supply adjustments globally are any indication in the sector, a top JSW Steel official said on Sunday.
Steel prices fell around 40 per cent to Rs 55,000-57,000 a tonne in the domestic market.
The prices had started falling from April-end.
I don’t foresee further downside in steel prices. Globally, there is a production cut of 62 million tonne. Moreover, 29 per cent of Chinese steel capacity is under bankruptcy. Global supply adjustments and higher Indian steel consumption will help keep prices firm, JSW Joint Managing Director and Group CFO Seshagiri Rao told PTI in an interview.
Compared to 2021-22, domestic steel demand will be higher by nine million tonne to 115 million tonne by March this financial year, he said.
The World Steel Association forecasts that demand for the metal will contract by 2.3 per cent in 2022 to reach 1,796.7 million tonne, after an increase by 2.8 per cen
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