Hopes of an increase in steel demand in the country have been dampened by the rains

- However, there is a possibility that the demand will increase again: in the last 3 to 4 months, the market price fell by Rs. 15 to 20 thousand per ton!

In the steel-iron-steel market and industry in the country, the equations have recently seen a rapid reversal. Demand in the steel market from the construction and infrastructure industry and the sector in general has seen a slowdown during monsoons. On rainy days, the movement in the construction and infrastructure sector decreases and due to this, the number of orders coming from this sector to the steel market and industry also decreases. This year, apart from the normal monsoon, the rainfall has also been significant in various states of the country and its impact has been seen recently on the construction sector as well as on the steel market. However, now there are signs that the rains are leaving. But the optimism of the demand has been seen increasing again. Meanwhile, in the steel export sector from the country, the recently released figures have also indicated that the situation is discouraging. Steel market experts said that there has been a decline of around 53 to 54 percent in steel exports from the country during the period of 6 months from April to September this year. In these six months, steel exports have decreased to around 35 to 36 lakh tonnes. Sources in the steel market said that the impact of the export duty imposed on steel exports by the Government of India has been seen on the exports and the slowdown in economic growth at the global level has also affected the demand from overseas in the steel market in the country. Before this, in the month of July, a situation was also seen when the steel import in the country increased compared to the steel export! In the recently completed month of September, the steel export from the country has decreased by approximately 56 to 57 percent and the market informants were saying that the overseas demand in the steel market has been slower than expected even in the current month of October.

Iron ore is used by manufacturers as a major raw material in the steel-iron manufacturing process. According to such iron ore market sources, iron ore prices in the world market have collapsed recently and have been going down to about 11-12 month lows. Market sources were saying that due to collapse of iron ore, the price of steel has also fallen in the world market and its impact has been adverse on the export of steel from the country. In the world market, there were signs of slowing Chinese demand recently due to various reasons. In addition to the resurgence of Covid cases in China, there was news that the demand for China in the world market has recently decreased significantly amid the retreat in economic development and increased money congestion in the construction sector and the fear of political instability in China. The prices of iron ore in the world market recently declined to about $95 per tonne for near term delivery and around $92 to $93 per tonne for forward delivery. In India's steel market, prices have been under constant pressure recently, and prices have decreased by Rs.15 to 20 thousand per ton in a period of about 3 to 4 months. In March, such prices were said to be around Rs.84 to 85 thousand per ton, but recently there have been indications that they have gone up to Rs.64 to 65 thousand. The fall in prices has also seen a decline in production. However, market experts have recently been predicting that the market price will bounce back as the optimism of demand increases. Meanwhile, some manufacturers are now also shifting to low-emission steel production. Due to this, the market has shown the possibility that the pollution caused by steel production can be reduced. Experts are hoping that the amount of carbon produced by steel production will decrease due to this. Meanwhile, the producer price index for steel in China has recorded a decline of around 17-18 per cent year-on-year in PPI in September.