Sep 14, 2022
Steel prices to rise after falling for over 5 months
2022-09-19
After continuous week-on-week decline in steel prices for almost six months, domestic integrated steelmakers are hiking the price of the alloy for the first time this financial year, indicating a probable bottom to the declining trend.
ArcelorMittal Nippon Steel India (AM/NS) has increased prices by around Rs 500-1000 per tonne, said people in the know. Other leading players like JSW Steel NSE -0.34 %,
Traders and market participants said that the primary steelmakers had sent out feelers since last week about an impending price hike.
The hike comes at a time when the margins of steelmakers have been shrinking due to lower prices and elevated input costs.
“I think prices have become quite low and at this price I don’t think too many steel companies would want to operate,” TV Narendran, the managing director of Tata Steel told ET Now Tuesday. “So there is enough cost pressure now for steel companies to also push up steel prices.”
The price of benchmark hot-rolled coil (HRC) steel has declined by about 30% from a peak of Rs 78,800 per tonne ex-Mumbai in the first week of April to around Rs 55,500-56,000 now, according to data from SteelMin ..
Source: Indiatimes
