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5 Major Factors that are Working Wonders for the Steel Industry

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5 Major Factors that are Working Wonders for the Steel Industry

History has never given steel the “Midas touch” that it gave gold. In spite of this, steel has managed to become an imperative part of our lives and is making our buildings and pipe networks stranger and steadier. This year had a late start for the steel industry but finally, the sun of steel is shining bright now. Well, the market has been volatile since the start of the year. But over the last two months, a sector that has been doing really well is that of steel. Wondering why only steel? In this blog, Sigma Steel Pipes is here with five fabulous answers to your question. So, hang tight and read till the end.


  1. The Stance of PRC on Steel Production

The People’s Republic of China or PRC has finally cleared the haze around its ambiguous inflow and outflow of steel. Initially, this haze was accredited for two major reasons. Firstly, people were barely stepping out of their homes on the pretext of the lackadaisical mental health hangover that COVID-19 had given the world. Secondly, the property market wasn’t doing well. But now, with normalcy kicking in, the steel industry is good to go and enter the suburbs of the PRC. Subsequently, the price per tonne of steel has risen from $500 to around $620-630 per tonne. These are good numbers, to begin with.


  1. Watch out for the Domestic Market.

Indian steel prices were at a premium compared to their Chinese counterparts, meaning importing steel from China was cheaper.


That has quickly turned around. From a premium of Rs 8,000, the Indian steel makers went ahead and cut prices, while the Chinese players increased them. Suddenly, the entire ratio has flipped and now you have the imported Chinese steel coming at a premium in comparison to the domestic one. However, with Sigma Steel Pipes in the picture, a considerable number of industries are getting steel at decent quotations.


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