Sluggish steel demand lower domestic steel prices; Base metals recover - Metals Weekly - Motilal Oswal

- Indian steel prices remained subdued due to weak demand. Long product (TMT Mumbai) prices fell 2.2% WoW while flat product (HRC Mumbai) prices fell 0.8% WoW. Pressure from imports remains high.

- Sponge iron prices decreased 0.9% WoW to INR21,900/t while Pellet prices increased 3.7% WoW to INR8,500 on iron ore supply constraints in Odisha.

- Iron ore supply in eastern regions has become very tight due to delays in getting permits for transportation. Govt. machinery is busy facilitating investigation of Shah Commission and is not available for issuing permits. Practically, large number of mines is now closed.

- Steel prices declined 0.8% WoW in Europe at their 30 month low level. Price increased 1% and 3.8% WoW in China and N. America while prices were flat in other geographies.

- Iron ore prices increased 1% WoW to USD122/t while coking coal prices were up USD7 to USD154/t as China booked major volumes.

- Base metals prices showed uptrend after last week sell off. Aluminium, Zinc and Lead prices increased 2%, 3% and 7% respectively while Copper prices were flat WoW.

Source : Equity Bulls

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