It is reported that Indian steelmakers have already faced dangerously steep by their sharp margins, so they will not be able to stand back any further drop in steel prices, except for having a long-term contract price of coking coal and iron ore.
Steel prices for both structural steel and flat steel products in the country have fallen by over 40 percent since September 2008. Several steelmakers said that prices have bottomed out if price is going down continuously. Most of them will shut their plants down for the loss.
However, there is a bit positive news because steel consumption in 2009 seems no fall so far.
Another watch is that housing and capital goods sectors would remain slow for the next six months, and it will keep steel demand at low and cutting prices under heavy pressure for these steelmakers still. Source: Yieh.com