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Prices of flat steel have not come down while that of long steel have been adjusted downwards. Speaking to CNBC-TV18, SK Roongta, CMD, SAIL said prices of flat steel products are likely to be cut by Rs 1000-2000/tonne.
HR (hot rolled) steel prices, he says, are trading in the range of USD 750-800 per tonne. He expects them to range around same level in May-June as well.
Here is a verbatim transcript of the exclusive interview with SK Roongta on CNBC-TV18. Also watch the accompanying video.
Q: Could you confirm whether the prices of flat steel products have gone down and by how much?
A: Flat steel products prices have not gone down. We have rolled over the prices of April in the month of May. But prices of some of the long steel products have been adjusted downwards.
Q: What primarily has led to this adjustment?
A: Long steel products, basically it is the market prices which determine day to day prices because the share of secondary producers is large. In the month of April, after sharp rise in the month of March and early April market prices came down in the second half of April. So the adjustment is to keep in tune with the market prices. It is about Rs 1000 for reinforcement TMT bars and Rs 1,000-2,000 for other long products. But for flat steel products we have kept our prices of April unchanged.
Q: The Steel Secretary indicated that there was a meeting with some of the steel industry bodies who said demand has actually started tapering off and that is the reason prices are coming off, is that the case?
A: No. That could be a temporary situation in the month of April, second half. Primarily due to the fact that in the month of March, there was a huge restocking by stockist as well as by the consumers and that is why in the second half of April there was slight slackening of demand. But on medium or long-term, demand prospects are still very good.
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