Pre Lunar Holiday iron ore recovery and steady scrap prices raise sentiments among India's secondary sector market players temporarily
Indian secondary steel market has been struggling to revive during the week which has been belied by experts. Even though the rally has not been steep it certainly has raised eyebrows coming at a time when the fundamentals remain unchanged.
On talking to experts Steel Guru come to know that the recent rally in international iron ore levels and resistance in scrap levels have created temporary optimism. However, it is unlikely to sustain given the demand and liquidity crunch plaguing the market.
The price rally was across all products except structural steel declining at Ludhiana and Delhi but rallying handsomely by INR 800 per tonne in Mumbai.