Steel Prices May Advance in India as Demand Expands

Indian steelmakers may raise prices as construction restarts at the end of the monsoons and the festival season’s onset spurs home and car purchases, according to Steel Authority of India Ltd. Chairman C. S. Verma. Prices have “bottomed out” and may rebound in September after remaining flat for three months.

India’s steel demand, which expanded 7.6 percent in the last fiscal year, is forecast to grow 9 percent in the year ending March 31, helped by demand for automobiles and spending on roads and ports. Home renovations and sales of cars and houses start increasing from September and usually peak on Diwali, the festival of lights, on Nov. 5.

There has been a revival in consumption in the last 10 days and it should further rise next month. The festivals are the peak season for steel consumption and with global demand also recovering, prices look firm.