Comments on: Flat Steel Prices bottomed ??? http://blog.sbispat.com/2008/09/flat-steel-prices-bottomed/ Steel Industry News Sat, 04 Sep 2010 17:15:44 +0000 http://wordpress.org/?v=2.6.2 By: smehta http://blog.sbispat.com/2008/09/flat-steel-prices-bottomed/#comment-112 smehta Wed, 26 May 2010 12:33:37 +0000 http://blog.sbispat.com/?p=6#comment-112 Dear Mr. Indrajit Sengupta, Regret was away for one month in areas of no internet connectivity. I fully agree to the plight of the SSI Engg. Units & the advantage being taken by large scale public & private sector houses in forcing them to accept orders without escalation. It is the distinct case of arm twisting which continues in lieu of lack of protocol or joint representation. Ideally strong directions through associations should work. Unfortunately, associations in India are not well represented and directives/recommendations given by them are treated most lightly. My suggestion would be to plan material procurement rather than hope or expect public sector or private giants to behave reasonably. Will discuss with you personally a long term strategy which we have followed with companies like Thermax, which have shown tremendously favourable results. Best Regards, Sanjiv Mehta Dear Mr. Indrajit Sengupta,

Regret was away for one month in areas of no internet connectivity.

I fully agree to the plight of the SSI Engg. Units & the advantage being taken by large scale public & private sector houses in forcing them to accept orders without escalation.

It is the distinct case of arm twisting which continues in lieu of lack of protocol or joint representation. Ideally strong directions through associations should work. Unfortunately, associations in India are not well represented and directives/recommendations given by them are treated most lightly.

My suggestion would be to plan material procurement rather than hope or expect public sector or private giants to behave reasonably.

Will discuss with you personally a long term strategy which we have followed with companies like Thermax, which have shown tremendously favourable results.

Best Regards,
Sanjiv Mehta

]]> By: Indrajit Sengupta http://blog.sbispat.com/2008/09/flat-steel-prices-bottomed/#comment-110 Indrajit Sengupta Fri, 21 May 2010 15:52:17 +0000 http://blog.sbispat.com/?p=6#comment-110 Only waiting for comments Only waiting for comments

]]> By: Indrajit Sengupta http://blog.sbispat.com/2008/09/flat-steel-prices-bottomed/#comment-109 Indrajit Sengupta Fri, 21 May 2010 15:50:52 +0000 http://blog.sbispat.com/?p=6#comment-109 Since SSIof India accounts for,for Project jobs & otherwise,upto 80% production,40% exports,50% effective employment,it has to be made mandetory for all the big Private & Public Sector Houses to allow price-escallations & more importantly,use of a norm of technical evaluation of pricing for such jobs being awarded to SSI in stead of taking resort to undue nogotiation/haggling with people who are available in abundance & many of whom are afraid to stick to reasonable costing for fear of losing the chances Since SSIof India accounts for,for Project jobs & otherwise,upto 80% production,40% exports,50% effective employment,it has to be made mandetory for all the big Private & Public Sector Houses to allow price-escallations & more importantly,use of a norm of technical evaluation of pricing for such jobs being awarded to SSI in stead of taking resort to undue nogotiation/haggling with people who are available in abundance & many of whom are afraid to stick to reasonable costing for fear of losing the chances

]]> By: Indrajit Sengupta http://blog.sbispat.com/2008/09/flat-steel-prices-bottomed/#comment-108 Indrajit Sengupta Fri, 21 May 2010 15:37:32 +0000 http://blog.sbispat.com/?p=6#comment-108 1)Can you update the data ? 2)Experts have talked about overall effects of slowdown of National Projects etc. due to fluctuations in prices & availability of steels.Who do you think will talk about the plights of SSI Engg. units who are compelled to accept such Project subcontracts without any escallation-clause,in India, being the actual executors of 80% if not 90,of all such Project Jobs ?We are one such,doing substancial jobs for expansions & revamps of SAIL Plants,compelled to accept BQ jobs at a raw material price of Rs.38,500/- per MT & buying them at upto Rs.56,000/- & also facing imposition of L.D. punishment occassionally. 1)Can you update the data ?
2)Experts have talked about overall effects of slowdown of National Projects etc. due to fluctuations in prices & availability of steels.Who do you think will talk about the plights of SSI Engg. units who are compelled to accept such Project subcontracts without any escallation-clause,in India, being the actual executors of 80% if not 90,of all such Project Jobs ?We are one such,doing substancial jobs for expansions & revamps of SAIL Plants,compelled to accept BQ jobs at a raw material price of Rs.38,500/- per MT & buying them at upto Rs.56,000/- & also facing imposition of L.D. punishment occassionally.

]]> By: smehta http://blog.sbispat.com/2008/09/flat-steel-prices-bottomed/#comment-32 smehta Wed, 08 Oct 2008 05:36:21 +0000 http://blog.sbispat.com/?p=6#comment-32 Thank you Mathew for participating on our Blog. As probably the largest steel trading company in the world, I would give a high level of credit to your comment. Having said that, there definitely seems to be resistance from Chinese mill for below USD 725/- CFR for HR coils. Considering the stock that we are sitting on, we can only pray that this is not a bottomless pit, as each mill tries to stop the bleeding. Will re-visit this topic 2 weeks later. Sanjiv Mehta CEO Thank you Mathew for participating on our Blog. As probably the largest steel trading company in the world, I would give a high level of credit to your comment. Having said that, there definitely seems to be resistance from Chinese mill for below USD 725/- CFR for HR coils.

Considering the stock that we are sitting on, we can only pray that this is not a bottomless pit, as each mill tries to stop the bleeding.

Will re-visit this topic 2 weeks later.

Sanjiv Mehta
CEO

]]> By: Matthew Stock http://blog.sbispat.com/2008/09/flat-steel-prices-bottomed/#comment-31 Matthew Stock Wed, 08 Oct 2008 05:06:46 +0000 http://blog.sbispat.com/?p=6#comment-31 Personally, I am an optimist but on the question “Flat Steel Prices bottomed ???” I have to say today the answer is no. the only thing that was preventing prices of flat products, and steel in general, from falling further was the high cost of raw materials. Scrap, pig iron, sponge iron, and the spot market for iron ore, have recently all collapsed and coke is also weakening. So the days of ultra high prices for steel making raw materials are over and this will enable and result in steel producers cutting prices further. So we have not seen the bottom yet. Anyone who says otherwise is probably sitting on stocks! Personally, I am an optimist but on the question “Flat Steel Prices bottomed ???” I have to say today the answer is no. the only thing that was preventing prices of flat products, and steel in general, from falling further was the high cost of raw materials. Scrap, pig iron, sponge iron, and the spot market for iron ore, have recently all collapsed and coke is also weakening. So the days of ultra high prices for steel making raw materials are over and this will enable and result in steel producers cutting prices further. So we have not seen the bottom yet. Anyone who says otherwise is probably sitting on stocks!

]]> By: ARUN BHAT http://blog.sbispat.com/2008/09/flat-steel-prices-bottomed/#comment-30 ARUN BHAT Wed, 08 Oct 2008 04:38:40 +0000 http://blog.sbispat.com/?p=6#comment-30 Unsold stocks in the market are high and with liquidity crunch there is still room for price corrections upto usd 50 pmt in the short term. Expect upward price movement only from 1st qtr 09 Unsold stocks in the market are high and with liquidity crunch there is still room for price corrections upto usd 50 pmt in the short term. Expect upward price movement only from 1st qtr 09

]]> By: Rajesh Gupta http://blog.sbispat.com/2008/09/flat-steel-prices-bottomed/#comment-28 Rajesh Gupta Tue, 07 Oct 2008 13:21:08 +0000 http://blog.sbispat.com/?p=6#comment-28 Hi Dharmesh Thanks for the good news....as a steel producer, i always feel import is not viable, after considering 3-6 month uncertainity in steel arrival, Foreign Exchange risk, etc Anyways, why impost products which can be made here, & which are essentially in surplus.... & that, currently, does include BQ Plates, also,no? Hi Dharmesh
Thanks for the good news….as a steel producer, i always feel import is not viable, after considering 3-6 month uncertainity in steel arrival, Foreign Exchange risk, etc

Anyways, why impost products which can be made here, & which are essentially in surplus….

& that, currently, does include BQ Plates, also,no?

]]> By: Dharmesh Shah http://blog.sbispat.com/2008/09/flat-steel-prices-bottomed/#comment-23 Dharmesh Shah Wed, 01 Oct 2008 05:37:11 +0000 http://blog.sbispat.com/?p=6#comment-23 Hi everybody. Seems like this is a bottomless pit for Indian importers. With the USD approaching INR 47.50 and LIBOR at an unprecedented 6.88%, the possibility of imports even at the price levels today seem unviable. Whereas, I hope that the prices rally and stabilise at some level in the near future, unless, the INR appreciates & LIBOR comes to past levels, all this speculation on prices has little meaning. sorry, sounds depressing but the call of the day seems to be to lie low and wait for some time till sanity returns. Hi everybody.

Seems like this is a bottomless pit for Indian importers. With the USD approaching INR 47.50 and LIBOR at an unprecedented 6.88%, the possibility of imports even at the price levels today seem unviable.

Whereas, I hope that the prices rally and stabilise at some level in the near future, unless, the INR appreciates & LIBOR comes to past levels, all this speculation on prices has little meaning.

sorry, sounds depressing but the call of the day seems to be to lie low and wait for some time till sanity returns.

]]> By: Anand R Raghavan, VTV http://blog.sbispat.com/2008/09/flat-steel-prices-bottomed/#comment-22 Anand R Raghavan, VTV Tue, 30 Sep 2008 12:24:09 +0000 http://blog.sbispat.com/?p=6#comment-22 Am happy to see this interactive forum on steel. As a regular buyer, access to forums such as this provide a unique insight and perspective, the value of which is hard to quantify. Thank you all for your interesting inputs. Am happy to see this interactive forum on steel. As a regular buyer, access to forums such as this provide a unique insight and perspective, the value of which is hard to quantify.

Thank you all for your interesting inputs.

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