{"id":107233,"date":"2021-01-05T10:10:04","date_gmt":"2021-01-05T10:10:04","guid":{"rendered":"https:\/\/precoinnews.com\/?p=107233"},"modified":"2021-01-05T10:10:04","modified_gmt":"2021-01-05T10:10:04","slug":"steel-prices-rise-by-up-to-rs-2400-a-tonne-more-hikes-expected","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/business\/steel-prices-rise-by-up-to-rs-2400-a-tonne-more-hikes-expected\/","title":{"rendered":"Steel prices rise by up to Rs 2,400 a tonne, more hikes expected"},"content":{"rendered":"
A primary producer said that the prices would be raised in tranches this month and the total increase could be Rs 6,000 a tonne.<\/strong><\/p>\n <\/strong><\/p>\n Amid the noise around rising steel prices, the rally continued in the new year with some companies increasing prices by Rs 1,000-2,400 a tonne and indicating more hikes in the coming weeks.<\/p>\n A primary producer said that the prices would be raised in tranches this month and the total increase could be Rs 6,000 a tonne.<\/p>\n “The first tranche is already effective. We have increased hot rolled coil prices by Rs 1,500 a tonne and rebar by about Rs 2,400 a tonne,” he said.<\/p>\n Jindal Steel & Power (JSPL) has increased prices by Rs 1,000-1,500 a tonne.<\/p>\n V R Sharma, managing director, said that the market was good, but prices would stabilise if NMDC kept its iron ore prices at the same level.<\/p>\n The buoyancy in the market was reflected in JSPL’s production numbers released on Monday.<\/p>\n The company recorded its highest ever production and sales in December; production increased 20 per cent year-on-year to 1.93 million tonnes in Q3 while sales increased 12 per cent (Y-o-Y) to 1.88 million tonnes in the same period.<\/p>\n Other major producers, too, are expected to come out with a good showing in the third quarter.<\/p>\n Some companies, however, were waiting for NMDC’s move on prices before taking a call on the quantum of increase.<\/p>\n “We will decide this week,” said a producer.<\/p>\n Since India entered the unlocking phase, steel prices have been on a continuous uptrend.<\/p>\n Sharma explained that there was a shortage of long products as secondary producers that account for about 40 per cent of the production were not able to come up to the right level of production.<\/p>\n “They are producing 30-31 per cent which is being made up for by the six major producers,” he said.<\/p>\n The increase in prices, however, has caused much discontent among user industries.<\/p>\n Raw materials industry, too, has raised the matter.<\/p>\n About a week back, the Indian Steel Association (ISA) wrote to the Prime Minister’s Office (PMO), explaining the reasons behind the price increases undertaken by the industry.<\/p>\n 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.<\/p>\n The industry also highlighted evacuation challenges with respect to iron ore and said that iron ore export competes with the movement for domestic use.<\/p>\n The ISA has urged for a six-month ban on the export of iron ore till the situation stabilises.<\/p>\n Days after, the Federation of Indian Mineral Industries (FIMI) wrote to the PMO, countering ISA’s points.<\/p>\n FIMI said that the ISA was obfuscating the issue and justifying the unjustifiable increase in steel prices.<\/p>\n The association also pointed out that the Indian steel industry fixes its products almost at par with international levels; on the contrary, Indian iron ore prices were priced much lower than international prices.<\/p>\n Photograph: Amit Dave\/Reuters<\/strong><\/p>\n