Steel costs surge to Rs 5,000 per tonne amid Russia-Ukraine conflict
Steel

Steel costs surge to Rs 5,000 per tonne amid Russia-Ukraine conflict

Domestic steelmakers have increased the costs of hot-rolled coil (HRC) and TMT bars by up to Rs 5,000 per tonne as the supply chain is being affected amid the ongoing Russia-Ukraine conflict.

After Russia invaded Ukraine, supply troubles have impacted global costs of wheat, soybean, fertiliser and metals such as steel, copper and aluminium - raising worries about costs and economic recovery.

The costs have increased in the last few days and are likely to go up further in the coming weeks with the crisis deepening between the two nations.

After the price update, a tonne of HRC will cost approximately Rs 66,000, while the buyers will obtain TMT bars for nearly Rs 65,000 per tonne.

Meanwhile, the Nifty Metal index has increased about 12% in the past five trading sessions against a 2% drop in Nifty 50. Domestic brokerage house Motilal Oswal believes that approval of Russia will influence the costs of aluminium, nickel, steel, thermal coal, and PCI coal positively.

India is a net exporter of aluminium and thus, the brokerage believes that firms like Hindalco, National Aluminium Company (NALCO) and Vedanta Group will benefit from the elevated aluminium costs.

Whereas Coal India will be the largest beneficiary of a revival in coal demand, Tata is likely to be the biggest beneficiary of any steel cost increase in the EU.

Motilal Oswal believes the approvals on Russia will lead to a disruption in the supply chain for certain commodities, and it may take up to certain months to reinstate the entire supply chain. Costs are likely to remain elevated until this is attained.

Image Source

Also read: Steel sector ramps up exports as domestic demand slumps

Domestic steelmakers have increased the costs of hot-rolled coil (HRC) and TMT bars by up to Rs 5,000 per tonne as the supply chain is being affected amid the ongoing Russia-Ukraine conflict. After Russia invaded Ukraine, supply troubles have impacted global costs of wheat, soybean, fertiliser and metals such as steel, copper and aluminium - raising worries about costs and economic recovery. The costs have increased in the last few days and are likely to go up further in the coming weeks with the crisis deepening between the two nations. After the price update, a tonne of HRC will cost approximately Rs 66,000, while the buyers will obtain TMT bars for nearly Rs 65,000 per tonne. Meanwhile, the Nifty Metal index has increased about 12% in the past five trading sessions against a 2% drop in Nifty 50. Domestic brokerage house Motilal Oswal believes that approval of Russia will influence the costs of aluminium, nickel, steel, thermal coal, and PCI coal positively. India is a net exporter of aluminium and thus, the brokerage believes that firms like Hindalco, National Aluminium Company (NALCO) and Vedanta Group will benefit from the elevated aluminium costs. Whereas Coal India will be the largest beneficiary of a revival in coal demand, Tata is likely to be the biggest beneficiary of any steel cost increase in the EU. Motilal Oswal believes the approvals on Russia will lead to a disruption in the supply chain for certain commodities, and it may take up to certain months to reinstate the entire supply chain. Costs are likely to remain elevated until this is attained. Image Source Also read: Steel sector ramps up exports as domestic demand slumps

Next Story
Infrastructure Urban

NHAI Defends Use of Mamallapuram Pond for ECR Project Ramp

                                                The National Highways Authority of India (NHAI) has informed the National Green Tribunal (NGT) that it was compelled to use a portion of a pond in Mamallapuram to construct an exit ramp for the East Coast Road (ECR) four-laning project between Mamallapuram and Puducherry. The clarification comes in response to a petition alleging that the construction encroached on the waterbody without valid justification.In its submission..

Next Story
Infrastructure Transport

Tiruvallur Begins Full Audit of Accident-Prone Roads

Tiruvallur, a fast-growing logistics and residential hub on Chennai’s northwestern edge, has begun a comprehensive audit of fatal and non-fatal road accidents across the district.Special task forces made up of transport, police, and revenue officials have started field investigations at high-risk locations such as Red Hills, Poonamallee, and Tiruvallur town.The initiative follows an alarming 188 road crashes, including 49 fatalities, reported in February alone. Tiruvallur Collector M. Prathap has directed officials to analyse five years’ worth of crash data to assess if road design flaws o..

Next Story
Infrastructure Urban

Modi Hands Over 51K Job Letters, Urges Youth to Drive Growth

Prime Minister Narendra Modi on Monday distributed over 51,000 appointment letters to newly recruited youth in various government departments and organisations, addressing them via videoconferencing during the Rozgar Mela.Speaking to the gathering, Modi said today marks the beginning of new responsibilities for the recruits. He urged them to strengthen India’s economy, boost internal security, help build modern infrastructure, and bring meaningful change to people's lives. The sincerity with which they perform their duties, he said, would directly impact India’s journey towards becoming a ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?