The positive indicators in the last quarter of the current fiscal have raised hopes among major steel producers that the market will pick up once a new government is formed.
The market started appreciating slightly since December 2013 and there seems to be improvement in sentiment in the global as well as domestic market.
In the domestic market, steel prices came down from Rs.7,000 to Rs.6,000 a tonne in 2012-13, but went up by Rs.1,000-1,500 a tonne during the last quarter despite fall in raw material prices.
In the long products market, steel prices are largely influenced by secondary producers who account for 75 per cent of market share. Ingot index has gone up to Rs.34,200 during the last quarter of 2013-14 from Rs.31,200 in the year-ago period. “Such an increase and consequent movement in steel market are mainly due to shortage of scrap feed for secondary producers, pick-up in international market, dry season in India and an overall positive business sentiment,” Director (Commercial) of Rashtriya Ispat Nigam Limited (RINL) T. K. Chand told The Hindu .
RINL and other leading manufacturers such as SAIL, Tata Steel, JSW and JSPL are laying thrust on customer care to promote their products. Tata has been focusing on the retail business model. Market sources said JSW was planning to set up 1,000 shoppes across the country to exploit the retail market.RINL is poised to introduce its new retail model of star retailers and channel partners.