SEATTLE (Scrap Monster): Crisil- the analytical company and a subsidiary of the American company S&P Global predicted elevated global steel prices during the initial quarter of the current fiscal, mainly driven by higher realizations and new capacities coming on stream.
The low base effect of the Jan-Mar ’20 quarter coupled with restrained supply of iron ore from mines in Brazil and Australia had boosted average steel prices to $690 per tonne in the last quarter of fiscal 2021. This compares with $483 per tonne during the same quarter a year before. After moderate rise in the opening two months of the year, the prices resumed rally to hit the levels of $830 per tonne by end-March this year. This is the highest price level in the past 12 years, Crisil noted.
The rich realizations drove steel exports in March to 1,290 kilo tonne (KT), significantly higher by 126% over the recent monthly average exports of 650 to 750 KT. The overall exports surged 29% in fiscal 2021, mainly driven by weak domestic demand in the initial quarter and higher export realization in the final quarter of the fiscal.
Crisil expects the momentum to continue this fiscal too, with finished steel exports likely to surge higher by 12-16%.
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