Steel prices has drawn significant government attention

Tag : Steel Making
Amidst the currently prevailing volatile and speculative steelprice scenario in India, SteelGuru.com has started the much neededbarometer to track and measure the price movements on daily basis.

Steel prices being an issue at the forefront in the context ofinflation, drawing significant government attention, making up forabout 4 per cent in the Wholesale Price Index(WPI), has beenmedia’s most favorite and hot topic at the moment.Unfortunately, the facts are misrepresented very often due tocomplexity in the structure and the dynamics of the steel market,leaving the users of the information mostly in a state ofconfusion.

In order to provide an index for steel prices, we call it SENSEXfor steel, SteelGuru.com decided to work on both long products andflat products for respective category indices as also a compositeone for steel. We call them LPPI, FPPI and SPI and have startedreleasing these indices with effect from July 1st 2008, aftertaking June 30th 2008 as base.

LPPI is based on daily market prices of three benchmark productsrebars, wire rod and sections in 4 metros, whereas FPPI is based onHRC, plates, CR and HDG. These indices have been built consideringtheir respective weights in the composite categories as also in theshares of sales in the regional markets.

The pricing input is from www.steelprices-india.com, whichpublishes market transaction prices of benchmark products amongselect locations 5 days a week.

These price indices outline the way domestic steel market is movingday by day and will help producers, agents in the supply chain,steel buyers, bankers and analysts in their respective businesses.