The domestic prices of steel products have dipped below the Rs. 230,000 per ton mark due to a sudden drop in the cost of raw materials in the international market.
Domestic steel producers — Amreli Steels Limited (ASTL) and Ittehad Steel — announced a big decrease in the prices of steel rebars by around Rs. 8,000 per ton on Monday, according to JS Research. Effective from 10 October 2022, the new prices now stand in the range of Rs. 221,000-225,000 per ton.
A similar announcement is expected by other manufacturers as well.
Today’s decrease in steel prices is likely due to the cost of scrap coming down in addition to the retardation in domestic demand as the country reels from the flood aftershocks. Additional research suggests the rupee appreciation observed in the past 10 days also facilitated today’s sharp reduction in domestic steel prices.
In April and June, Steel prices went up while in August these went down during the current year. It started increasing from Rs. 227,000 per ton in April and went up to Rs. 250,000 per ton in August 2022. From there it started falling again and now crashing to around Rs. 221,000 per ton.