The early arrival of the monsoon season in the south of India has suppressed the price of steel long after recent momentum.
At the National Commodity and Derivatives Exchange of India, steel long June contract traded at Rs31,600 (£434) per tonne down 0.09 per cent on Monday morning trading.
The Indian market for steel long, which is used in the construction industry, has seen recent price hikes with speculators being given as the reason. But now that the monsoon has arrived, demand appears to be lower as construction projects slow down due to the rains, as well as iron ore mines being waterlogged.
The Chinese steel market also remains volatile with prices dropping domestically by 70 yuan to 4,830 yuan (£460.30) a tonne in Shanghai on Friday, according to the Xiben New Line Stock Co trading platform. China has also suffered from severe rains and floods, while steel mills are also reported to be cutting prices.
