Steel prices hiked again
Surrounding all the issues of the steel prices hike, some companies have further increased the prices by Rs 1,000 to Rs 2,400 a tonne and have indicated more hikes in the coming weeks. A leading producer said that the price could go up to Rs 6,000 per tonne in the near future.
Jindal Steel & Power (JSPL) has increased prices by Rs 1,000 to Rs 1,500 a tonne. VR Sharma, Managing Director, told media sources that the market is good, but prices would stabilise if National Mineral Development Corporation (NMDC) kept its iron ore prices at a stagnant level.
The rise in the market was seen when JSPL released their production numbers, and the company recorded its highest ever production and sales in December 2020. Other leading producers are also expected to come out with their numbers after NMDC declares their move on the prices.
Steel prices have seen continuous growth since the unlock, proving that the industry is recovering well from the pandemic.
However, this is worrisome for the user industry. Concerns have been raised by the raw materials industry as well.
Indian Steel Association (ISA) has already written to the Prime Minister’s Office (PMO) explaining their reasons for the steel prices hike. Primary among them were that international prices had moved from a bottom of $397 a tonne to $750 a tonne due to temporary shortage in global supplies and a shortage of iron ore, a key input material. The association also highlighted the concern of the industry regarding evacuation challenges with respect to iron ore and mentioned that iron ore export competes with the movement for domestic use. The ISA has requested for a six-month ban on the export of iron ore till the situation stabilises.