Being one of the most influential industries in the market, steel plays a vital role in a country’s growth, especially in India. The steel industries in India account for 2% of the total GDP and promise steady growth for the country.
Though we see many industries paving their way toward success there are several factors that can pull them down within a short time. However, every steel industry in India is not fully capable of handling the ups and downs as the industries are still building their empire. But one must be aware of all such factors which can affect them and must be prepared to face them at the right time.
There are a few industries that have been in the market for more than a decade and have overcome many hurdles and have been role models for all other budding industries and one of them is Sugna TMT. We at Sugna TMT have identified some of the factors that can affect steel prices in India. Let us see them one by one.
Factors Affecting The Steel Price In India
Currency Fluctuation
This is one of the universal factors that can affect any industry in a country to go bankrupt which is currency fluctuation. The main trading medium with other countries is the dollar. If the value of the Indian currency goes down, the traders might have to sell the steel at a low rate or even make a loss to the industry. This factor not only applies while selling the finished goods but also in importing the raw materials from other countries.
Raw Material Cost
The steel manufacturing industries use several raw materials and one of them is iron ore which is a vital material to produce steel. The recent war between Russia and Ukraine has dramatically hiked the price of raw materials in India as many of the raw materials have stopped coming in from these two countries. This indirectly has affected the steel manufacturing sectors to reduce the production of steel and surge the prices of the finished goods.
Government Decisions
Steel is used everywhere in our day-to-day lives and we can see most of the steel that is manufactured is used in construction. Steel prices also depend on factors that government makes decisions, such as boosting the economy through infrastructure development which is heavily reliant on steel. In such factors, the prices of steel may fluctuate and the rate of production can get affected.
Demand and Supply
It is often seen that many industry or service is affected by this factor of demand and supply and to mitigate this, many believe in demand forecast which is partially effective as per many advisors. When the demand is high, the supply tends to be lower and when the demand is low the supply tends to be higher. Prices are increased mainly when the supply is low and vice versa for the price decrease.
We at Sugna TMT have been handling such situations very tactically and have made sure our clients are delivered at a competitive price. Today, we stand among the top industries that have been manufacturing quality steel without any issues. We thank our valuable customers for always encouraging and being with us in our ups and downs.
Festive and climatic seasons
India is known for its various festivals and during this season many tend to buy automobiles as a good sign and this leads to high manufacturing of steel as per the demand. The price of the steel also varies as per the climatic changes such as summer and winter where the construction of work may be slowed down due to bad weather conditions.
Conclusion
Today, we see India as a rapidly growing country and steel has been one of the major factors of a steady growth. Steel industries in India are striving hard to overcome all such factors and we at Sugna TMT applaud them all for such great courage. We have been in the field of steel manufacturing for more than a decade and had the privilege to witness the growth of the country rapidly.
We at Sugna TMT have major experience in any type of working environment and we aim to deliver the utmost best quality of steel tackling all the factors that can affect us. Then, what are you waiting for? Call us today.