Domestic steel prices to rebound taking cues from global price rise

KOLKATA: Steel prices are climbing up globally with a 3 per cent increase in rates over the last few days. While a perk up in Chinese demand from infrastructure and construction has been robust this year, industry watchers say the key point is that domestic steel prices which are faltering now, are poised to rebound taking a cue from it.

Spot prices of internationally traded hot rolled cols in Asia increased last week regional buyers accepted higher offers that reflected strong Chinese domestic prices, Platts said in its Steel Business Briefing on Monday.

Apart from demand for steel from infrastructure and construction sector in China, its auto sector, a key industry for steel demand has also seen growth leading to overall bouyancy in prices. Another reason to expect a rebound in steel prices is the bullish sentiment across base metals.