Roger Manser, Consultant, Steel Business Briefing told CNBC-TV18 that he expects a mild recovery in the Chinese economy. He also said that the steel producers in China are certainly looking to raise prices as they have been forced to reduce prices due to over production and over capacity.
Iron ore prices have gone down 20% in the past quarter and Roger Manser of Steel Business Briefing said prices may go down slightly from the present levels and he does not see any major rise in steel prices soon.
Roger Manser, Consultant to Steel Business Briefing sees steel price moving northwards in the January-June period in Asia. He also predicted slight improvement in Chinese demand for steel in the second quarter.
The steel sector across the globe is experiencing a slowdown in consumption. However, production continues at the same pace which creates a gap pushing steel prices down. In an exclusive interview with CNBC-TV18, Roger Manser, Consultant, Steel Business Briefing says that he expects this trend to continue till the end of the year.
The steel sector is under tremendous pressure amid concerns over a possible decline in steel prices and demand. Companies like Tata Steel, SAIL and JSW Steel are bound to face some pressure on their margins given that raw material prices remain high.