On Tuesday, Steel Authority of India Ltd. (SAIL) announced a reduction in its product prices by Rs 1,000 to Rs 1,500 per ton. This strategic decision aligns with the latest global market movements, particularly as global steel prices have experienced a nearly 15 percent decline over the past month. The downturn in prices can be primarily attributed to decreased demand stemming from the ongoing European financial crisis.
Mr. Atul Chaturvedi, the steel secretary, had previously noted on Monday that there has been a consistent decline in steel prices, indicating that this downward trend is expected to continue into the following month.
The spokesperson for the company mentioned, "We have brought down prices of various products in the range of Rs 1,000-1,500 a ton to align with the global trend." This price adjustment reflects a broader market response to changing international steel costs.
In addition, an official representative from JSW Steel hinted that a price cut is also imminent, with an announcement anticipated later on the same day. The company's Joint Managing Director, M.V.S. Seshagiri Rao, elaborated, "Spot prices for long products are volatile and we change them several times a month. For flat products, there is likely to be a reduction in prices this month because of a decline in international prices." He also noted, "However, there are no signs of tapering in the domestic demand."
As the months progress, it is expected that steel prices will continue to soften, particularly since demand from the realty and construction sectors often dips during the monsoon season.
In market activity, shares of SAIL closed at Rs 198.60 on the National Stock Exchange (NSE), showing a decrease of 3.8% from their previous close. Meanwhile, shares of JSW Steel closed at Rs 1,054, reflecting a 4.9% drop.