The enhance in India’s domestic steel consumption from 2QFY21 has led to greater price which may invite a government intervention to curb rates, India Ratings and Research mentioned on Friday.
In its steel monitor report, the agency cited that India’s domestic consumption in November 2020 was at 8.93 MT, 7.8 per cent greater on MoM level but 2 per cent decrease in terms of YoY comparison.
“The improved domestic demand is reflected in steel prices which further increased in November 2020.”
“Consumption within the flat products segment has been supported by a demand from the automobile and consumer durable industry, due to the festive season, in addition to the ongoing work-from-home culture and preference for personal mobility.”
However, the report pointed out that steel mills have raised rates with consumption expanding, resulting in a reduction in inventories at steel mills, in addition to the higher iron ore rates simply because of tight domestic supplies.