After revising steel prices upwards last month, steel firms are now offering discounts as customers are keeping off the market, say industry sources.
"Due to demand slowdown, steel companies have started offering discounts as customers are unwilling to absorb the revised price announced in September," say sources in the industry.
They also say though there is no formal rollback of the price revision, discounts are offered to offset the revised prices.
In September, major steel companies had increased prices by R1,200-1,500 per tonne on the back of a rise in input cost due to a sharp depreciation in rupee.
However, subdued steel demand from major user industries is now forcing them to offer discounts on revised price points.
When contacted, leading steel makers refused to come on record.
Steel demand during the first five months of the fiscal grew only 0.5% due to the overall slowdown.