Rediff India Abroad
 Rediff India Abroad Home  |  All the sections

Search:



The Web

India Abroad




Newsletters
Sign up today!

Article Tools
Email this article
Top emailed links
Print this article
Contact the editors
Discuss this article

Home > Business > Special



Steel capacity to rise by 2008

July 10, 2006

Richard Herselman, consultant at Steel Business Briefing expects steel capacity to increase in the next two years.
Herselman believes that steel prices will decline on account of capacity addition.

Excerpts of CNBC-TV18's exclusive interview with Richard W Herselman:

What is happening in China? Are prices really that soft?

We are seeing prices coming down in the local market. Prices are expected to soften towards the end of the year. However, at the moment, we feel that this is more of a situation of sentiment in the markets rather than a drastic slow demand. We are seeing most traders holding back purchases to see if steel prices are slowing in the coming months.

Could you give us a sense of the quantum of decrease in prices and what exactly is hurting sentiment at this point? Why are they holding purchases back?

They are primarily holding purchases back because they expect prices to soften. There is a lot of capacity coming on this year and in the coming years for hot-rolled coils and cold-rolled coils. Most of them expect this increased capacity to be more than what can be consumed, therefore they expect prices to fall. Their holding back will cause prices to come down slightly faster than it would normally happen in the markets.

For more on markets & business, log on to www.moneycontrol.com

More Specials

Share your comments


Advertisement






Copyright © 2006 Rediff.com India Limited. All Rights Reserved.