Weak demand may force steel mills to offer discounts in the short-term

Demand growth had moderated to 6.4 per cent in April 2019 and ICRA said it was likely to remain lower than the FY19 Q1

Domestic steel mills have increased prices upto 1,000 a tonne in some product lines to adjust the cost push but weak demand may lead to discounts in the short-term.

“The increase in the flat segment has not been across the board. We have raised prices of products catering to the three segments — heavy engineering, infrastructure and hydrocarbons,” said a producer. Another producer said it was difficult selling products at these prices. “After raising prices, it is likely that producers will have to resort to discounts,” he said. The increase ranging between Rs 750 and Rs 1,000 a tonne was in