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

09 Mar 2022 CW Team

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

Infrastructure Transport

19 Dec 2025

Tripura Rail Survey Approved For Jirania–Bodhjung Link

The Ministry of Railways has approved a Final Location Survey (FLS) for a proposed new railway line between Jirania and Bodhjung Nagar in Tripura. The planned section will span 14 km and is estimated to cost around Rs 4.2 million, with the entire alignment located within West Tripura district. The approval marks a key step towards strengthening railway infrastructure and supporting industrial growth in the state. Bodhjung Nagar is Tripura’s principal industrial and commercial hub, developed mainly for resource-based industries such as rubber, bamboo and food processing. The proposed Jirania..

MCF Raebareli Rolls Out Its 15,000th Passenger Coach

The Modern Coach Factory (MCF) in Raebareli, Uttar Pradesh, has reached a major production milestone with the manufacture of its 15,000th passenger coach on December 15, the Ministry of Railways said. During the current financial year 2025–26, the unit has produced a total of 1,310 coaches so far. Established in 2007 at Lalganj in Raebareli, MCF is among India’s most advanced passenger coach manufacturing facilities. Built at a cost of around Rs 31.92 billion, the factory has an installed annual capacity of 1,000 coaches and is located about 3 km from Lalganj on the Kanpur–Raebareli Roa..

RVNL Wins Gandak River Rail Bridge Contract

Rail Vikas Nigam Limited (RVNL) has received a Letter of Award from North Eastern Railway for a major railway infrastructure project valued at Rs 1.65 billion. The contract relates to the construction of the substructure for a key railway bridge over the Gandak River. The bridge will be constructed between Paniyahwa and Valmikinagar stations as part of the doubling of the Gorakhpur Cantt–Valmikinagar railway section. Designed to enhance capacity and operational efficiency, the structure will comprise 14 spans of 61 metres each and will be supported by double D-type well foundations. The des..