Jindal Steel, MD VR Sharma made some statements about the steel industry; “Chinese steel consumption will decrease in the coming times and will take a 5-7% hit. This blow will stabilize the world. Today the prices are abnormally high. I am sure there will not be another price increase, but I think if there is a price increase, it will not be good for customers.
Companies realized price increases. What about supply constraints and inflation in raw material prices? In the future, will the industry have to make further price increases?
Total input costs increased by Rs 10,000 per ton. The price increase ranges from Rs 4,000 to Rs 6,000 per ton on all products. We do not expect any further price increases this month or in the next 15-20 days. Instead, we expect international freight rates to decline. Today the demurrage level is $55,000-60,000 per day. It used to be around $15,000-20,000 a day. Coking coal prices are $410 per ton for Australia. We expect these prices to melt or at least decrease to a moderate level of $350 or $360 per ton. Scrap prices are hovering at an all-time high of $550-570/ton.
As the Chinese economy is going through a very difficult period, we expect the price of shredded scrap to decrease to around $500 per ton. More than 20 companies are unable to meet their bond-denominated obligations, and due to non-payment of bond installments or bond interest rates in China, the entire real estate market has collapsed.”
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