Steel prices seen moving upwards by USD 25-30 in 3-4 months

Steel prices seen moving upwards by USD 25-30 in 3-4 months

 
 

MUMBAI: Driven by a strong domestic demand from the automobile, infrastructure and other allied sectors, steel prices are likely to increase by USD 25-30 (Rs 1,000 1,200) per tonne in the next three to four months, industry officials said.

 
 

Steel-makers feel that better international prices and increase in coking coal and iron ore prices would also lead to the metal's price increasing. It is currently pegged at Rs 30,000 per tonne.

 
 

"We expect steel prices to firm-up in the coming months. In the next three to four months, prices may go up by another Rs 1,000 per tonne as domestic demand firms up. Prices of coking coal as well as input costs have risen," a top official at Essar Steel said on condition of anonymity.

 
 

Costs of iron ore and coking coal have surged this year after miners moved to a quarterly pricing mechanism, thus affecting the margins of steel companies.

 
 

The growth in the auto sector is also directly affecting the steel prices.

 
 

Auto components-maker, Steel Strips and Wheels, that makes wheel rims for most of the global auto players such as Nissan, BMW, Audi, Toyota, GM, Honda, Tata Motors and Honda, is also contemplating a hike in steel prices.

 
 

"Prices will go up by USD 25-30 per tonne on the back of growth in the auto sector and rise in input costs by March-April," Steel Strips and Wheels' chief general manager, (Corporate and Raw Material), S Raghuvanshi, said.

 
 

Meanwhile, a senior official at Jindal Steel and Power also said that there is an upward pressure on steel prices and prices would harden further on the back of an increase in domestic consumption by 10 per cent

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