Price correction in domestic steel prices expected in near term
Some moderation is on the cards with the onset of monsoon It is expected that steel prices are set to come down ahead of a weak season after a two-year rally correction in prices is likely from current levels but not very steeply as there are many uncertainties in the market. Domestic steel prices are showing signs of stress after a relentless rally over the past two years following supply disruptions, decarbonization measures globally, especially in China and geopolitical risks stemming from the Russia-Ukraine war, which has driven up raw material costs. As per a recent report by CRISIL, while prices have defied correction predictions because of continuing uncertainties, some moderation is on the cards with the onset of the monsoons. The report points out that heightened geopolitical risks have limited the correction in prices, which had started to moderate early this year. But the Russia-Ukraine conflict, which began in late February, cranked it up again on supply disruption fe...