The increase in steel prices has to sustain so that Tata Steel finds it viable to export steel, which will reduce the domestic surplus and support prices. Tata Steel Ltd’s management pointed out that steel prices have increased again, chiefly due to China. Tata Steel’s management said that international steel prices had risen by $80-100 per tonne in the past 4-5 weeks. The increase in steel prices has to sustain so that Tata Steel (and other steel companies too) find it viable to export steel, which will reduce the domestic surplus and support prices. A lot depends on whether China continues to support global steel prices by producing less steel and consuming more of it.

Source: Mint August 08, 2017 02:15 UTC