Indian steel prices in the recent past have corrected sharply, owing to substantial fall in international markets, easing raw materials prices and weaker demand. September saw a yet another decline of over six per cent as domestic steel ingot prices was seen moving below 27700 rupees per tonne, the lowest since March this year. Demand from construction industry, a major constituent of steel applications has been affected negatively due to tightened monetary policies and extension of south-west monsoon. With inflation remaining above the comfortable zone, India's central bank has been taking measures such as increasing the reserve requirements and lending rates. It is usual that in times of higher borrowing rates, home sales and construction activity takes a back seat. Moreover with monsoon in north-west areas extending till late September, demand for the long products such as ingots and re-bars were on a lower side.
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