Gp/Gc Prices Spurt

This comes at the right time for producers like SAIL, Lloyds Steel and Jindal Iron, who are facing stiff competition from cheap imports from European and CIS countries. The prices of GP/GC were ruling below Rs 25,000 per tonne in 1996-97. Now, they are moving between Rs 26,000 and Rs 32,000 per tonne.

The GP/GC products are mainly used in rural areas for roofing their houses, fabricators and in the white goods sector.

However, sources feel that the demand for these products peaks up during summer season. Hence, it will be difficult to sustain the higher prices.

Industry analysts say the prices in the international markets have also moved up. The international demand has increased in the past few months because of the foreign auto majors shifting to GP products instead of the cold rolled products.

However, it would take some time for the Indian auto majors to change due to some welding problems.

But most of the domestic white goods players have shifted to GP from CR products.

Due to the bad phase prevailing in the steel industry, scrips like Lloyds Steel, Jindal Iron had a very low discounting.

With the steel industry all set to turn around, one should see a better discounting for these counters.