Steel prices globally did not move significantly, while, maintaining weakness. CIS Export (FOB Black Sea) HRC prices continue to hover around USD 365/ tonne before closing flat MoM at USD 362.5. China has been exporting steel at a cheaper price keeping global prices at the lower levels. In India, 2.5% hike in import duty could not have any impact on the domestic prices due to very poor demand. Domestic steel prices fell by about 5-6% during the past three months. Iron ore (62% Fe grade) prices meanwhile, slipped 4% MoM to close at USD 59.4/ tonne. Premium hard coking coal prices on the other hand after continuous fall saw some recovery and gained 5% to close at USD 91/ tonne.
Commenting on the outlook, Goutam Chakraborty, analyst, Emkay Global Financial Services, opined, ''We now expect steel prices to remain weak in absence of real demand. Base metals prices, continuing the last month’s trend saw fell further even as USD index came down by 1% to during the month to 95.55. Lead has been the weakest performer with 10.5% cut, followed by zinc with a 9.9% price drop, copper falling by 6% and aluminium by 3.5%. LME inventory rose 10.3% for lead, followed by 2.2% gain in zinc and 0.6% rise in copper. Aluminium inventory meanwhile, fell 4%.''
Rate decision by the US Fed is going to remain an overhang on base metals prices. Underlying demand would remain as the key behind any sustainable recovery in prices, Chakraborty added.
Source: Myris.com