The price of the steel industry will increase again!

 

On the one hand, increased demand for housing, on the other, supply uncertainty due to the Russia-Ukraine war.  Due to these two reasons, steel prices were increasing since the beginning of the year.  But it started to decrease again due to decline in construction work during monsoon.  However, steel companies feel that the price is unlikely to fall further.  Rather, it will raise its head again from November.

• What's the story?

According to a section of the steel industry, the Russia-Ukraine war, which began in February, disrupted supply of the product.  Added to that are restrictions on steel exports to China.  That increases the price.  However, the price has decreased by about 40% to 55,000-57,000 rupees. Lalit Beriwal, director of Shyam Steel, said, “Generally, construction work is stopped during the monsoons.  As a result, the demand for steel decreased.  Although the price increased at the beginning of the year, it has come down rapidly between July and September.

• What's next?

However, JSW's Joint MD and Group CEO Nasthagiri Rao believes that the price may increase again from November.  In his words, "The price of steel has fallen.  I don't think I will read anymore.  Rather, it will start increasing in the coming days.''  On top of this, the demand for steel in the country will increase again in the near future.  As a result, the price will increase.  He said, "Total steel demand in the country this year may increase by 90 lakh tonnes to 11.15 crore tonnes from the previous year." However, the World Steel Association said that the world demand in 2022 will decrease by 2.3% to 179.67 lakh crore tonnes.