I have seen purchase teams of Infra companies wondering how they can effectively plan their buying schedules to maximize profits based on the previous price trends. I have a simple answer to this seemingly complex question. Buy when others don’t! Yeah pretty stupid and simple!
The logic and conclusion is based on a simple fact that however complex the market of a commodity may seem the price still depends on the Domestic & Export demand/ Supply of the commodity. Now the question which comes to head is when it is people buy less of steel. We can connect the timings to the major festivals in India i.e. Diwali, Ramzan, Holi, Navratri. Demand drops suddenly in the festive season due to many states observing holiday during the festivals. Now a smart owner/ purchase manager can align the purchasing based on the festival month to maximize the profits from a project.
Another way to nail the timing is season; Rainy season is the season which notices fall in steel prices due to reduced demand in market. If the site allows to work easily to this season, they should definitely plan to take maximum benefit of the price decline in the market.
So, to summarize the above article:
- In India, steel prices correct during major Festival time making it attractive to buy bulk quantity.
- Season affect the prices as well, especially Rainy season as Outdoor Infra projects tend to slow down during this season. So it depends upon the clients’ site, if it allows to work during monsoon season one should definitely make the most of it to maximize profits/ minimum overall project costs.
It is mandatory that the above suggestions should be seen in light of the current economic happening and may not hold true in case of introduction of government policy which negatively affects supply of the commodity. Hope you find the article useful in timing the buying.
Agarwal Steel Corporation is into steel supply business since last 30 years and work with manufacturing companies in facilitating steel requirements for their projects. For more information and enquiries you can mail us at sales@agarwalsteelcorp.com and our representative will get in touch with you for your requirement.