If the price trend in March is to be believed the decline in steel market might have run out of steam. Price remained unchanged in March after a rabble rouser in February post spring holiday.

In any case the price debacle after lunar holiday came like a bolt from the blue was unfathomable with experts looking for excuse in the backdrop of heightened expectation of demand explosion post-holiday. Instead overproduction and inventory pile up along with sluggish demand diluted the spirits.

Unpalatable flab shedding might be disappointing but might have come just in time for clarity on market fundamentals as the real demand from infrastructure and construction sector might be emerging.

As the weather warms up so will the construction activity will pick up. China PMI at 51.8 in February maintained expansionary trajectory. However with passage of weeks the economic activity is certain to pick up.

Economic growth is touted at 8% in 2013 which would be good enough to keep the demand rolling on.