Steel prices may fall further by another Rs 1,000 a tonne in June due to a softening global trend originating from the financial crisis in Europe and demand slowdown ahead of the monsoons, an official said.
Prices of long steel products - mainly consumed by infrastructure and construction firms -- have already fallen by Rs 5,000 a tonne since April.
"It (steel prices) may further fall by Rs 1,000 a tonne next month mainly due to the present European crisis and slackening demand ahead of monsoon," Steel Secretary Atul Chaturvedi told PTI on the sidelines of a conference.
The conference was organised to highlight the "achievements" of the ministry during the first year of the UPA-II government.
Industry observers said that the crisis in Europe may adversely impact international steel prices, which could - in turn - affect domestic rates.
While steel prices, hovering in the range of Rs 32,000-Rs 47,000 per tonne, have softened in recent months, they still rule at a premium of about 30 per cent over the year-ago period.
The high prices are attributed to a 90 per cent increase in prices of vital inputs for steel manufacturing, such as iron ore and coking coal.
