Posted on 18 Oct 2024
China’s stimulus to the property market has arrested the fall in steel prices. However, it is unlikely to stem its exports to the world, including India, according to experts.
According to data from BigMint, a market intelligence and price reporting firm, since the third week of September, prices of hot-rolled coil (HRC) – a benchmark for flat steel – increased by about Rs 1,500 per tonne ex-Mumbai to Rs 48,600 per tonne.
The increase comes as China announced a monetary stimulus package and property market measures, including mortgage rate cuts, in late September.
A BigMint analyst said China’s latest economic stimulus measures provided a short-term boost to steel prices, driven by infrastructure spending and interest rate cuts.
However, despite early optimism, the overall market response has been cautious, with sustained price recovery hinging on further policy actions and improvements in real estate demand, the analyst added.
In long steel, rebar prices have increased by Rs 3,600 per tonne ex-Mumbai to Rs 53,600 per tonne, BigMint data showed. This could be due to the revival of construction activities post-monsoon.
Source:Business Standard
