Steel becomes costlier; companies hike rates by up to Rs 4,900/tonne in India | Steel became costlier by Rs 4900 per tonne, companies increased prices in two days

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  • Steel Becomes Costlier; Companies Hike Rates By Up To Rs 4,900 Tonne In India

New DelhiOne hour ago

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  • Hot rolled coil price reaches Rs 71,000 per tonne
  • Cold rolled coil price hiked to Rs 84,000 per tonne

Inflation is taking a jump in the midst of Corona’s hit. In the coming times, you may have to loose more pockets to buy a vehicle and build a house. This is because the domestic manufacturers have increased the prices of steel. According to industry sources, the prices of hot rolled coil (HRC) and cold rolled coil (CRC) have increased by Rs 4,000 to Rs 4,900 per tonne. Companies have made this increase in prices in the last two days.

71 thousand rupees per tonne HRC price

After the hike, the price of HRC has gone up to Rs 70-71 thousand per tonne. At the same time, the price of CRC has reached Rs 83-84 thousand per ton. HRC and CRC are flat steel. It is mainly used in the auto, appliance and construction industries. The increase in steel prices affects the cost of vehicles, consumer goods and construction. This is because steel is the main raw material of these sectors.

Major steel manufacturing companies of the country

SAIL, JSW Steel, Tata Steel, JSPL and AMNS India are the major steel producers in the country. These companies together account for more than 55% of the total steel production in the country. SAIL officials say that this change in prices is based on the market. However, the official declined to comment further. JSW Steel officials did not comment on the price hike.

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The impact of rising global steel prices is visible

A JSPL official said the rise in global steel prices has led to a jump in raw material prices. Indian iron ore prices have risen by up to Rs 4,000 per tonne. This has pushed up steel prices. Domestic steel prices are still 20-25% lower than international prices. Most steel companies have increased exports due to low domestic demand. The MSME sector has not picked up pace yet. Inventory is at a low level. It will accelerate once the ban is lifted.

Steel demand may exceed production

VR Sharma, MD, Jindal Steel and Power Ltd, had said in April that the demand for steel in the country in the current financial year may exceed production. Sharma had said that the steel demand in the country could be 140-150 million tonnes in the financial year 2020-21. While the production is expected to be 125 million tonnes. This will also keep the prices at higher levels. According to Sharma, he said that most countries including India have announced stimulus packages. This has increased consumption. Till these stimulus packages are not used, steel prices will not come down.

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