OUTLOOK-India steel futures seen in a range on poor demand

MUMBAI, Nov 4 (Reuters) - Indian mild steel ingot futures may trade in a range with negative bias this week as demand for steel waned internationally in the wake of the global financial turmoil, analysts said.

However, India's new export tax norm on iron ore may give some support the futures, analysts said.

Late on Friday, the government changed the way it taxes overseas sales of iron ore fines, replacing a 15 percent value-based duty with a flat rate of 200 rupees per tonne. See [ID:nDEL379440]

Though industry is not too happy with the decision it will still support prices to some extent, said an analyst with a Mumbai-based brokerage.

The industry wanted a complete removal of export taxes on iron ore, the key material for steel making.

India allowed free steel imports in April and imposed a tax on exports to tame rising prices that aided soaring inflation.

Most government decisions have now been factored in and the focus is on weak demand outlook...which is not likely to recover soon, said Vibhu Ratandhara, an analyst with Bonanza Commodity Brokers Pvt Ltd.

Steel prices have crumbled as the global financial turmoil tears into the real economy, slashing end-user demand for steel while tight credit markets delay construction projects. See [ID:nLU211822]

Many large steel makers are cutting output on falling demand amid concerns of a worldwide recession, analysts said.