Tuesday, October 2, 2007

Steel industry robust; Present prices likley to continue till end of year; Iron ore prices in India to follow Chinese negotiations: Tata Sons

JJ Irani of Tata Sons said that Steel industry is robust. The cost of raw materials are shooting up. It mainly consists of iron ore and coking coke. But he don't think that any sub prices rise is on the cards and there may be a marginal rise. Present prices are likley to continue till the end of the year.

He further said that Iron ore prices in India will follow the Chinese negotiations. Indian demand will outstrip the steel production and India may have to import steel. The steel capacities are seeing delay in commissioning due to this India may see increase in imports, causing prices to remain firm.

Andrew Goodwin of Steel Business Briefing said that China exports are declinging in long products and flat product prices are robust. He expects negotiations to take longer and expects a 30% increase in iron ore prices. He believes that steel prices will remain stable and likley to pick up later in the year. Flat products will remain strong on US markets picking up. Chinese exports are not drying up and the prices are robust. He is forecasting the prices in 12 months to be stable. He further said that Financial problems in US are not likely to affect the steel prices. China is seeing a dip in growth in production, but overall production is still strong, he said finally.

No comments: