ABSTRACT
Steel prices have a tendency to fall across the world, unable to cover the CAPEX costs, and thus, retarding both the setting up of new investments and expenditure on R&D, to be able to develop newer products and applications of steel. Steelonthenet has published a diagram on the relationship between prices and capacity utilization. It is argued that the bulk of the steelmaking costs are due to raw materials. The price indices across the world have decreased through the quarters of 2015 for all regions. It is interesting to note that the prices in the southern markets are higher than in the rest of India, and the prices in Mumbai are the lowest. Imports of flat products have, indeed, created a downward pressure on prices, by creating adequate stocks to meet domestic demand, but imports of long products, especially bars and rods, help maintain the high prices at home, as the domestic prices are lower than those of landed costs.
