Steel prices in Punjab go down by Rs 1,300-2,000 per mt

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Chandigarh, Mar 26 Steel prices on Wednesday moved down by Rs 1,000-2,000 per metric tonne in Punjab, a day after the alloy producers agreed to stop export, steel traders said.

The Punjab traders said that the rates are expected to fall down further by another 1,000-1,500 per mt within a couple of days.

"The prices have softened because of the announcement by the Indian Steel Alliance that the steel producers would immediately stop steel export," said a Mandi Gobindgarh-based steel trader, while adding, "In view of the present situation, the prices might further go down a little bit even more."

However, the slight relief emerged in the shape of softening of steel prices could not accrue to steel consumers like light engineering industry of the state as induction furnaces have temporarily stopped booking orders from the industry due to reduction in prices.

The prices of ingot have come down to Rs 38,500 per mt from Rs 39,800 per mt within a day. Similarly, the rates of Round (Saria) have fallen down to Rs 43,000 per mt from Rs 45,000 per mt.

Although the steel prices have softened in the state, the light engineering industry has accused the state-based induction furnaces (secondary steel producers) of not passing on the benefit to them by creating false propaganda that there was no demand for steel in the state."We are not getting any benefit out of reduction in steel prices as the induction furnaces are not booking orders at reduced prices even as the demand for steel is there," Engineering Export Promotion Council Regional Chairman SC Ralhan said on Wednesday.