Any further drop in steel prices not feasible: Steel Authority of India Ltd

The country's largest steel maker SAIL Thursday said there were strong indications that domestic steel prices have already bottomed out and any further drop in its prices does not look feasible at this moment.

"Any further decline in prices does not seem feasible at this juncture," Steel Authority of India Ltd (SAIL) said in a statement.

There are strong indications that the domestic prices have already bottomed out for two reasons, it said.

While the first reason is substantial de-stocking in the market, the second reason is that the domestic demand is coming back to track with improvement in liquidity position, the company added.

Taking a cue from the international market, the domestic steel prices, particularly for flat products, were under pressure for some time.

Recent trends both in Chinese and other global markets are showing stability in prices, it said, adding that there is also an increasing trend in raw material prices, both for coal and iron ore.